The IBEX 35 of the Madrid Stock Exchange on Tuesday chained its fifth consecutive session on the rise to close at 8,700 points. Defensive stocks boosted the benchmark in a context of growing recovery in investor confidence.
The markets have recovered their appetite for risk, with a series of values ranging from oil to equities, hovering around highs, after having left behind the initial panic unleashed by the new omicron variant of the coronavirus, detected at the end of November.
The analysis // “The latest rally in risk assets was triggered last week by new reports confirming that the omicron variant of the coronavirus, while more transmissible, … causes fewer hospitalizations and deaths,” said Charalambos Pissouros, head of research of the brokerage JFD Group.
Context // Despite the tightening of restrictions in several European countries, investors are consolidating positions in the face of a new year in which inflation will return to focus, as it could put an end to the effervescence of the latest corporate results reports and force a cycle of interest rate rises.
IBEX 35 (IB)IBEX 35 (IB)
5 week highs in Europe
Solid Wall Street gains boosted the IBEX 35 European pairs on Tuesday and, despite concerns about the omicron variant – with France tightening restrictions and the rise of Covid-19 cases in Spain and Britain -, Five-week maximums were signed.
The pan-European STOXX 600 Index rose 0.6 percent to end the session in a five-week high.
- Risk appetite remains strong, despite the threat that the omicron variant will hamper the recovery of the global economy, which is already facing slower growth, supply bottlenecks and rising prices.
The STOXX 600 is targeting its best month since March and is up 5.5 percent so far in December. It is on track to gain about 22.4 percent in 2021 after falling 4 percent last year.
Context // Most European equity markets rose, from the IBEX 35 to Germany’s DAX leading the gains.
DAX (DAX)DAX (DAX)