The Ibex 35 closed this Friday with a drop of 1.60%, down to 19,513.8 points, in a session of strong sales that culminates its worst week since July. Over the course of the five days, the Spanish index accumulates a decline of 1.64%.
The week has been marked by the decisions of the main central banks, the sharp increase in energy prices, and tensions in the debt markets. To this, this Friday was added the quadruple witching hour, with the simultaneous expiration of futures and options on indices and stocks.
Telefónica and Santander lead the declines
The losses have spread across practically the entire Ibex.
Telefónica suffered the largest drop of the session, with a decline of 4.77%, followed by ArcelorMittal (-3.81%) and Banco Santander (-3.30%).
Only two stocks managed to finish in positive: Ferrovial (+0.19%) and Redeia (+0.13%).
The breadth of the losses shows the strong selling tone of the day, with the banking sector and some of the heaviest stocks particularly contributing to the index's decline.
The Fed and the Bank of Japan tighten their monetary policy
The central banks have concentrated much of the investors' attention during the week.
The Federal Reserve has raised interest rates for the first time in three years, while the Bank of Japan has also increased the cost of money to its highest level in 31 years.
Both decisions come with the markets watching the persistence of inflation and the effect that the rise in energy prices may have on prices.
The monetary pressure has had a particularly clear reflection in the debt markets, where yields have risen again.
The U.S. bond reaches 5%
The yield on the ten-year U.S. bond rose this Friday six basis points, up to 5%, a reference not seen since 2007.
The increase in debt yields raises competition against the stock market and makes financing conditions more expensive for companies and administrations.
This movement occurs after several days of tension in the global fixed income market and at a time when investors are trying to gauge how far monetary tightening will go.
Oil continues above 100 dollars
The conflict in the Middle East continues to affect the energy market.
The Strait of Hormuz remains practically closed and navigation through Bab el Mandeb continues to face difficulties due to the increasing presence of the Houthis.
Brent has slightly decreased by 0.22%, down to 105.59 dollars per barrel, while West Texas Intermediate has risen by 0.49%, up to 102.41 dollars.
Although Brent has corrected during the day, oil remains at very high levels and keeps doubts open about its impact on inflation and the upcoming decisions of central banks.
Europe also ends with heavy losses
The bearish day has extended across the main European markets.
The Euro Stoxx 50 has fallen by nearly 1.5%, while the German DAX has dropped another 1.5%.
The French CAC 40 has retreated more than 1.5%, London has lost more than 1%, and the Italian FTSE MIB has given up nearly 2%.
The accumulated losses during the week are also around 1.5% in the Euro Stoxx 50 and the CAC 40 and approach 2% in Milan.
Wall Street also finds no support
In the United States, doubts have continued during the first part of the session.
The Nasdaq 100 was trading practically flat around 29,400 points, while the S&P 500 recorded slight losses and the Dow Jones dropped nearly half a percentage point.
The pressure on bonds and doubts about investments linked to artificial intelligence continue to weigh on investor sentiment.
The 19,390 points, the technical boundary
The Ibex ends the week still above a reference that technical analysts consider relevant.
Joan Cabrero, an analyst at Ecotrader, places 19,390 points as the level that separates a still normal consolidation from a deeper correction.
"As long as the 19,390 points remain intact, I cannot speak of greater weakness nor confirm a corrective scenario towards 18,500 or 18,800 points," he has stated.
The selective index ends the session just about 124 points above that level.