Selective rises 0.7% encouraged by Wall Street gains and prepares for final session of the year
With the stock market year almost over and very low trading volume, any news could serve market participants who remain in the market to take or withdraw positions for the next fiscal year. That’s what happened during Thursday’s session, with a bullish open on Wall Street reactivating gains in Europe and allowing the Ibex-35 to close up 0.7% to over 8,300 points.
The upturn came on the back of weekly US jobless claims data. Although the figure is under control, it stood at its highest level since February. And the mere prospect of some deterioration in the labor market has revived hopes that the Federal Reserve (Fed) will have to ease rate hikes to avoid further problems for the economy.
Grifols led the Spanish selection with a lead of 2.77%, followed by Rovi (+2.30%), Solaria (+1.91%), Telefónica (+1.71%), Cellnex (+ 1.71%), Endesa (+1.48%), Fluidra (+1.40%) and Acciona Energía (+1.40%). In the lower part of only Unicaja (-0.28%), Meliá (-0.17%), Mapfre (-0.16%), Ferrovial (-0.12%), Logista (-0.08%) and IAG (-0.04%).
Despite the recovery on Thursday, December fell short of expectations for a year-end rally in a historically very positive month for European equity markets. But this year is nothing less true. Major European and US stock indices are losing ground in the monthly data, “with some, like the Nasdaq Composite, losing more than 10%,” Link Securities analysts recall.
The absence of the last session of the year and little new news that could move the markets keeps investors’ attention on the evolution of China’s health crisis as the process of reopening the economy continues. The big fear is that the number of coronavirus infections will skyrocket and the market will slide back in a situation where global supply chains will come under pressure again.
For the time being, the raw materials market remains relatively stable. This Thursday, a barrel of Brent oil, a benchmark in Europe, fell 1% but remained around $83, while the US West Texas traded at $78.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
