ECONOMY

Ibex 35 closes above 10,000 points for the first time in over two years

Benchmark index has improved its high for the year eight sessions in a row

With the US fiscal crisis resolved, at least for the moment, the European stock markets on Friday took advantage of some good figures out of China, whose economy grew 7.8 percent in the third quarter, to continue their recent rally.

In the case of the Spanish bourse, the blue-chip Ibex 35 index improved on its closing high for the year so far for the eighth session in a row ending at above 10,000 points for the first time since July 2011. The benchmark index added 0.85 percent to close at 10,001.80 points.

In the rest of Europe, the DAX in Frankfurt put on 0.43 percent, the CAC 40 in Paris was 0.90 percent to the good, while the FTSE 100 in London was up 0.71 percent.

“The big pick-up in the Ibex 35 is due basically to improved macroeconomic prospects, and a perception of lower risk on the part of investors – above all foreigners – of Spanish assets,” said Diego Jiménez-Albarracín, who heads Deutsche Bank España’s equity operations. “While things remain the same, there are no important resistance levels ahead until we get to 10,400 points, meaning that the rally could continue,” he said.

That could depend on what emerges from the forthcoming third-quarter corporate earnings’ reporting season. Speaking in New York on Thursday, Emilio Botín, the chairman of Banco Santander, Spain’s biggest bank said: “This is a fantastic moment for Spain, money is coming from all sides.”

The domestic economy is expected to have emerged from a long recession in the third quarter and the government is predicting a more solid recovery from 2015 onwards.

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