Spanish stock market fell 0.27% in November after Trump’s election victory From EFE

Madrid, November 29 (.) – The victory of the Republican Party and Donald Trump in the US legislative and presidential elections led to the evolution of the Spanish stock market this month, leading to a fall of 0.27%.

For Nextep Finance chief strategy officer Victor Alvargonzalez, “what marked him – this month – without the slightest doubt – is Trump’s election victory” and his economic measures, which affect “very positively, in general, all companies” because that “if you tell companies you’re going to deregulate, you’ll cut taxes, which obviously aren’t factored into stock market prices.”

In this regard, he added that “anyone who sees the treatment that companies are receiving, the innovation in Europe, the increasing level of regulation that exists in Europe, and sees that in the US everything is going in a different direction, much less hostile.” It’s not surprising for companies that European stock markets are underperforming compared to North American ones due to this problem.

That, he said, is one reason why Wall Street outperformed European markets this month and recorded all-time highs, even as consumption-related inflation was reported to have risen by two in the US. tenths last month. to 2.3%, which he considered “a little concerning data”, “which tells us that inflation in the US is more resilient than in Europe, and it is more expensive to reduce.”

Additionally, this analyst mentioned another Trump-related issue, namely the imposition of tariffs that “could be inflationary” and would particularly affect developing countries, although he cautioned that “what Trump says is one thing, but then we seeing more pragmatism in what he does.”

There were other conditions for stock markets in November, such as a quarter-point drop in interest rates after the US election, to 4.5%, or China-approved stimulus to revive the real estate sector or stock market. markets and bonds, as well as developments in the Ukrainian war (use of new missiles and Russian attacks on vital infrastructure).

Poor economic activity data in Europe, with services and manufacturing contracting, suggested fresh rate cuts, weighing on the depreciation of the euro, which fluctuated between $1.09 and $1.03 this month, ending at $1.055, although inflation in the eurozone in November rose by three-tenths year on year, to 2.3%.

The US election result also had an impact on other assets and commodities: it retreated from the all-time high of $2,790 reached on October 31 to end November at $2,660, while it reached records touching $100,000 in anticipation of easing regulations for cryptocurrencies (at the end month at $98,400).

The price of oil, thanks to Trump’s support for the oil industry and increased production, as well as the truce between Israel and Lebanon, fell to $73.3 this month (it was close to $77 before Trump’s victory).

Regarding the evolution of the large values ​​of the index, which this month fluctuated between 11,850 and 11,300 points and ended with a fall of 0.27% and above 11,600 points, Santander Bank (BME:) fell 2.59%, BBVA (BME:) fell 2.34%, Iberdrola (BME:) 1.14%, Telefonica (BME:) 0.65% and Inditex (BME:) 0.23%. Only Repsol (BME:) rose 3.28%.

The results propelled some companies to the top of the profit charts, with IAG (BME:) up 25.6% and its profits up 8.8%, while Acerinox (BME:) added 13.15% and Logistics (BME:) 7.76%.

Business earnings also moved in the opposite direction, with Rovi (BME:) remaining the biggest monthly faller (-17.48%), also impacted by the failed sale of part of its business, while Grifols (BME:) lost 15.9% after withdrawing its takeover bid from Brookfield, while Caixabank (BME:) lost 7.94% after it was unhappy with its strategic plan.

In Europe, growth stood out at 2.88% in Frankfurt and 2.18% in London, while Paris lost 1.57% and Milan 2.53%.

On Wall Street, the index has gained nearly 8%, nearly 6% and more than 6% this month. In Asia, Hong Kong lost 4.4%, Tokyo lost 2.23% and the Shanghai-Shenzhen index rose 0.66%.

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