Tensions in the Middle East and their influence on the price of oil. The tsunami and subsequent nuclear crisis in Japan. The peripheral debt crisis led by Portugal and Greece bailouts. Decelerating growth of the United States economy. All these systemic events have taken place in just 6 months, and markets are facing all of them.
The largest index has managed to avoid any losses this quarter. El Ibex 35 posted gains of 5.08% through June and closed yesterday at 10,359 points after rising throughout the day. This was the fourth consecutive day in the green.
This time the rationale was that German banks were going to participate in the Greek bailout and that the US stock market opened high.
The Ibex didn?t just stay above 10,000 points. It also broke resistance of 10,200 points, which analysts from Ecotrader had pegged as a key move.
Things have changed for the better for Spain, the most bullish market among the peripheral countries thanks to investors that have gotten out of the group of PIGS (Portugal, Ireland, Greece and Spain) during the better part of the first months of the year.
This explains how the profitability of Spanish bonds could stay around 5.4% or that the risk premium on public Spanish debt (with respect to Germany) has rallied only 240 basis points to 242.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
