Spanish Stock Market Surges as Investors Jump on the Curve to Recovery

The Ibex 35, has signed the best week since November 2008, 10.9%, at its close on Friday it soared 4%, putting the finishing touch to a bullish rally that began timidly on the 15th of May and has accelerated over the last two weeks.

The Spanish Stock market has rebounded 16% since April after reporting in March the worst quarter in its history with a 29% crash and it seems that the market recovery is catching up thanks to investors’ fear of being left out.

IAG (International Airlines Group) was at the head of the earnings as it shot up by more than 14.5%, while Sabadell, who has been the other protagonist of the advances in the week, recorded a rebound of 12%. The rest of the banks have also pulled the Spanish stock market up, with Santander and BBVA rising 11.35% and 9.8% respectively, Bankinter 7.9% and Caixabank 7.5%.

The Debt Market

In the debt market, the announcement of the ECB’s (European Central Bank) purchases sent bonds flying high, especially those in peripheral countries, that made the Spanish risk premium drop to 83 basis points, while the profitability of the Spanish bond stands at 0.56%.

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Written by

Tony Winterburn

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