The stock exchange faces one of the biggest races of the year for the Spanish market, with career paths ahead of the reopening of the US government. Ibex surpassed 16,600 points for the first time, advancing 1.4% to a new record high. The three-day terrestrial rally is 4.5% since the U.S. Senate cleared the way for the federal government over the weekend and shifted risk appetite back toward inversion.
In conjunction with US technology activities, inverter energy is improving and contributing to the continued progress of the European index. Germany’s Dax rose 1.2%, while the Eurostoxx and Paris Cac rose more than 1%. And despite Wall Street’s attempts at doubt, the Dow Jones has managed to reaffirm its all-time high thanks to advances in the financial sector, while the S&P 500 tops the charts of European stock exchanges and the Nasdaq has only 0.5% left.
“Once normal functioning of the North American regime is restored, attention will be focused on the publication of a number of macro references immediately relevant to Federal Reserve decisions that were not available last month.Meanwhile, the market will pay particular attention to the official employment report for September and October,” explains Renta4.
Citi’s experts believe that “statistical agencies will provide guidance on publication deadlines for updated data reports in the coming days.” In his opinion, September hiring dates are likely to be announced before the end of the year and could be announced as early as next month, but “it’s more likely to be announced on the moon or on Mars.” They calculated that they would have to wait until Dec. 10 to know the October date, and commented that while they believe it would be “useful” to know the November date at the Fed’s Open Market Committee meeting on Dec. 10, “it is not clear whether it will be announced on schedule or later.”
The banking sector is fueling the Spanish stock exchange, with the Ibex banking sector up more than 7% over the past three days. This increase amounted to more than 2.7% for Banco Santander and Banco Caixa, while Banco Unicaja, Banque Inter, BBVA and Banque Sabadell increased by more than 1.4%. Next to it, Solaria leads the selective advance with an increase of 3.8%, followed by Acciona and Grifols with 3% representation. However, only five values chose to decline. Repsol, Indra, Fluidra, Telefonica and Enagas fell between 0.9% and 0.3%.
In the foreign exchange market, the euro was stable at $1.1595. Brent crude, Europe’s benchmark, fell 0.34% to $64.94 per barrel on concerns about oversupply. In the digital market, 10 years of bonuses increased profitability in Europe and the United States.
“What I’m seeing is an atmosphere of optimism and momentum in the U.S.,” Roland Kaloyan, head of European variable income strategy at Société Générale, told Bloomberg. “The market is buying options into 2026 thanks to solid growth, AI investment, Federal Reserve rate cuts, and a weaker dollar.”
According to Profitability Media, which reviews Bloomberg, the resolution of the US government’s last four partial decisions has pushed the S&P 500 and most of its sectors higher. Since 1995, with the exception of early 2018, stocks have risen after partial trading, and consumer stocks have risen like Cabeza. Given this week’s 1.8% rise, the market may have discounted at least some of the normal subsequent reaction given the signs of a deal.
“Government deadlines and delays in releasing key economic indicators are making it increasingly difficult for investors and the Federal Reserve to assess the economic outlook, although the real challenge is not the final period for growth,” said Seema Shah, manager at Principal Asset Management. “However, as data releases resume, the possibility of future cuts of the sort on the part of the Fed should return, further reinforcing that a benign environment is at risk.”
“There was always a risk that a prolonged crisis would affect growth, which made the data difficult to interpret,” Michael Metcalfe, head of macroeconomic strategy at State Street, told Reuters. He added: “As a result, the idea that we have finally overcome the crisis is a relief, even if we do not expect a significant slowdown in growth.”
This month, after six weeks of paralysis and conflict between Republicans and Democrats, the U.S. House of Representatives is gearing up to vote on key legislation that would end the longest governing cycle in the country’s history. The politically charged lockdown has left more than 1 million federal workers unable to deliver, impacted food assistance programs and caused thousands of cancellations and airline delays.
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