European stocks manage to save the week this Friday. In this third week of decline in the indices of the Old Continent, it has once again First of all flat the tension between Russia and Ukraine. This Wednesday, Zelensky attacked Russian territory with missiles supplied by the United States and Ukraine, after receiving approval from Joe Biden, and Putin did not hesitate to respond with an attack and has already threatened to a decree that would allow it to use nuclear weapons. against his adversaries. Even though the escalation of geopolitical tensions was underway reticle for the markets, it was ultimately not done dent the weekly review, while the results of the AI queen attracted the attention of investors around the world. In this scenario, the Ibex managed to close practically flat, with a price at 11,656 points and an increase of 0.18%.
In this way, the Spanish stock market continues to be the most bullish index of the year on the Old Continent, recording 14.5% so far in 2024. All this despite the fact that during this Friday’s session the banks put pressure on the index, with drops of more than 4% even in the case of CaixaBank, after the approval of the new banking tax, which hurts big businesses the most. It is also the sector that has suffered the most from expectations of budget cuts from the European Central Bank (ECB).
In the weekly count, the Dax is the most bullish and manages to advance 0.5% during these five dayswhich maintains its annual increase at around 14%. For its part, the European benchmark, the EuroStoxx 50, corrects barely 0.1%, and remains around 4,788 points. Ecotrader analyst and strategist Joan Cabrero emphasizes that it is important to pay attention to the index to know if the Christmas rally will finally take place, or on the contrary, if “we are going to face the last part of the “year and the beginning of 2025 which could turn red”, estimates the analyst, who explains that “in the worst case, we would be in case of falls between 10 and 15% in the EuroStoxx 50, which would return the main European benchmark to levels of a year ago.
To see the evolution of this index, it is recommended to look at the critical support of the EuroStoxx 50 Total Return, an index which takes into account the impact of dividends on the price, which points at 10,900 points, of which there remains at 3.9%. However, “this same week it reached a low at 11,053 points, just 1.3% away from this key support. In this context, it would be ideal for the market to threaten to cross this level and then execute a reversal, a technical figure which usually marks significant turning points, especially if a bullish gap appears in this return“.
In the event that this happens, Cabrero asserts that “we would be faced with an unbeatable opportunity to position ourselves upwards: the risk of buying in this area would be minimal compared to the reward potential“, and Cabrero forecasts an advance of 10% for the coming months if this hypothesis comes true, and speculates that it could go up to 20%.
The French Cac 40 fell by 0.2% on a weekly basis, but it also deepened its annual decline, which is 4.7%. The Italian FTSE Mib is the red lantern of the week, down 2.3%while outside the European Union, the British FTSE 100 index added 2.4% to its price, boosted by the prospects of Trump as the new American president, which reactivated investor interest in the Kingdom -United.
On the other side of the Atlantic, Nvidia managed to exceed market expectations in the presentation of its results, even if investors were worried about the slowdown in the release of its Blackwell chip. In addition, they found the rising expectations regarding its revenues unencouraging. which increased to $37.5 billion for the fourth and final quarter of the year. Note that with one month to go before the end of the year, there are fewer and fewer catalysts for stock prices, so the chip producer’s balance sheet has even more. direction than usual.
Although the traders They first considered that it was time to sell American stocks, ultimately all the indices closed in positive, led by the Nasdaq 100 at the close of the European session. He the technological selection revalues 3% during the weekwhich led to exceeding the annual increase of 25%. Meanwhile, the stock market benchmark, the S&P 500, and the industrial index rose 1.6% and 1.5%, respectively.
Most bullish and bearish
Ibex stocks close the week in a mixed manner, Logista takes the lead with an increase of 4%, while Inditex and Merlin mark 3.4%. During the falls, Solaria is the most bearish, losing almost 13%. The banking sector was also strongly affected this week, five of the ten stocks that fell the most belong to this sector, but the company most affected was CaixaBank, which lost 7%. Grifols also loses 5% to Brookfield’s latest offer.
The dollar strengthened strongly against the euro, at the close of the European session the exchange rate was positioned around $1.04, levels never seen since 2022, while the market is waiting for the parity of the two currencies is achieved. Gold rose to $2,700 an ounce, once again approaching its highs of $2,787. Meanwhile, the barrel of Brent experienced a positive week of rise and reached 75 dollars per barrel of crude oil in the market.
