IBEX 35 reaches 11,600 points thanks to IAG growth

He Capricorn 35 opened the session 0.2 percent higher at 11,600 points, at the start of a session marked by a hangover from the Fed, which cut rates by 25 points, and in which Asian markets provided a pessimistic counterpoint to China’s announcement of new fiscal stimulus measures.

At the beginning, there was no clearly defined trend on the main European stock markets, but the basic indicators were trading almost flat. Thus, Dax lost 0.1 percent and Cac opened completely unchanged, while Ftse barely gained 0.02 percent.

Index Hang Seng Hong Kong and CSI China traded down almost 1 percent and lower optimism in European stock markets as Donald Trump’s victory in the US presidential election reverses the scenario.

The announced discretionary tariff policy planned by the President-elect puts China in the spotlight. Under the new US administration, the country could face tariffs of up to 60 percent, the closest thing to a trade war.

For an exporting country like China, Trump’s arrival in the White House represents a major setback. In 2018, when Trump imposed a series of tariffs on imports from China, including steel and aluminum, copper fell 20 percent from its peak, reflecting the risks facing the Asian giant.

Wall Street extended all-time highs

The fact is that Europe is also not immune to Trump’s measures, especially large German car manufacturers and renewable energy companies.

On the contrary, everyone on Wall Street is optimistic about the new tenant of the White House, which was reflected in the S&P500 index, which this Thursday reached 6,000 points for the first time in history.

In this holiday scenario, Fed Chairman Jerome Powell signaled that the US central bank would adjust interest rate levels based on macro data, without signaling any concerns that Trump’s program is highly inflationary.

Thus, the three most important indices of the American market – Dow Jones, S&P500 and Nasdaq – reached their historical highs. According to Michael Brown, a strategist at Pepperstone, there was no specific catalyst, just an intensification of the Trump effect.

IAG flies high on the IBEX 35

In the IBEX 35 index, the news is in IAG, which soars more than 7 percent after reporting pre-September profits of 2.340 million euros, up 8.8 percent, and announcing a 350 million share buyback program.

Following the airline group, Laboratorios Rovi shares rose more than 2 percent and recovered part of the decline suffered this Thursday, while Grifols quoted the results presented yesterday afternoon with a rebound of 2 percent, as did Solaria.

At the bottom, Arcelormittal fell just over 2 percent, BBVA corrected 1.5 percent and Banco Santander and Banco Sabadell fell 0.7 percent.

If this news was useful to you, subscribe to our newsletter. We won’t disappoint you! You can also add alerts finance.com to your networks and applications: Twitter | Facebook | LinkedIn | WhatsApp | Flipboard. And follow the best financial videos on YouTube.