The last week of Q1 2012 will be one of the most frenetic of the year due to market activity in Spain. The Ibex 35 continues to lag behind other European indexes, and yesterday investors sowed more doubt about the Spanish government's ability to trim its deficit via the 2012 National Budget that it will reveal on Friday. The Ibex was the only major European index to close with losses yesterday.
But losses were minimal. The index closed down 0.69% after having lost as much as 2%. At the last hour the Ibex tried to correct for gains seen on Wall Street and throughout Europe. It held resistance at 8,200 points, ending up at 8,224.7 points. The German Dax jumped 1.2%, the Cac 40 0.74% and EuroStoxx 0.68%.
But events that will take place during the next few days in Spain will not augur a calm week. "We think that doubts created by the results of the Andalusia elections yesterday, the general labor strike this Thursday and the Government's presentation of its National Budget on Friday are not inspiring confidence and security in our market, so we think that the Spanish stock market will continue to be weak despite relatively low prices," said Miguel Ángel Paz, a managing director at Unicorp.
