The Ibex 35 returns to close to annual highs, as investors recover their optimism after learning the first data of the business results of the season. The markets have not suffered after the refusal of the British Parliament regarding the agreement reached between Theresa May and the European Union. This afternoon the prime minister could face a vote of confidence, which if successful, could lead to new elections.
Doubts about economic growth are diminishing. This week the Chinese government announced a tax cut to encourage consumption. Meanwhile, Mario Draghi said he expects the European economy to avoid recession during this year.
However, the main sources of tension that caused sharp falls at the end of last year such as the trade war, the Brexit, the partial closure of the US government or the fear of an economic slowdown continue to be present in the markets.
The companies with the greatest exposure to the United Kingdom, such as IAG and Banco Sabadell, have responded with increases to the latest events. While utilities have been the worst performers after recent declines in interest on debt. The next sessions will continue marked by the presentation of business results and the evolution of Brexit.
Joaquín Robles, analyst at XTB