It is clear that the Spanish stock market is struggling to regain the 7,000-point level. The Ibex 35 endured its very own drama yesterday. It saw the goal, and it got close, but ultimately fell short. Although trading was generally up across Europe yesterday, propelled by solid macroeconomic data from the United States housing market, 2.24% in gains on the Ibex 35 were not enough to push the index past 7,000 points.
The index closed at 6,999.9 points and shaved yearly losses to around 18%. Falling prices are aided mostly by big companies and slightly ameliorated by good performance of mid-cap companies.
In hopes that yesterday's rally would continue for the next several days, experts see central banks as the key factors defining stock market behavior. Miguel Ángel Paz, a manager at Unicorp, said, "I think we'll either lose support or finally see a strong rebound based on what central banks decide to do."
"Today the United States Federal Reserve will announce its new interest rates, and the majority of the market has discounted the possibility of another Quantitative Easing (QE), most of all because this is an election year and the last time Bernanke appeared before the public he declared that they Fed still has some leeway within which to act."
