The equities have not received very well the return of the holidays on the part of the investors to the trading floors. If not rather the opposite and to the point of marking annual lows in what is a bad year for stock users. Where the benchmark index of the national stock market, the Ibex 35, has been close to the levels of the 9.200 points and with a tendency to deepen in the falls, even to strike down the important support that exists in the 9.000 points. There are already a good part of the analysts who comment that this fact is already a matter of days and can happen in the next sessions of trading securities.
From this current worrying scenario, it is convenient to review the events that have led national equities to reach these levels so low and at the same time worrying. So that in this way, you can know what they have to do with their investments from these precise moments. Not surprisingly, the deterioration of the selective index of the national stock market is becoming more and more pronounced. Where a very little hopeful data is that there have already been a good number of investors who have abandoned Spanish equities, both in terms of national and international capital.
In any case, one of the keys that small and medium investors want to clear is whether these movements are going to last for a short time or if, on the contrary, they are going to be perpetuated for too long. To the point of originating a downtrend of a certain duration of time. So that you understand what is happening in Spain we are going to provide you with some of the causes that are leading to the Ibex 35 being in a very delicate position. Where the fear of taking positions in the values of the Spanish stock market are present in their decisions.
At annual lows: your reasons
One of the main triggers for this situation in the national stock market is due to the slowdown in its economy. The reviews being carried out by different national and international organizations and institutions go in this direction. With a remarkable decrease in economic activity, although it is not exclusive only to the Spanish economy, but on the contrary it also affects neighboring countries. In any case, it is a new scenario that the stock market is trading and in this sense with revisions in the price of the shares.
One of the sectors that best capture this trend is undoubtedly tourism. Where during this past summer there has been a decrease in the number of visitors international very close to 4%. It is a very clear sign that the economy has lost strength and that it can have very negative effects on equities. Like other sectors of special relevance, such as the automobile sector or the industry itself in Spain. Not in vain, for this year it is expected that the Gross Domestic Product (GDP) will fall to levels of 2% or even more intensely.
Very expensive oil price
There is no doubt that the rise in price of black gold is another of the triggers of the current state of Spanish equities and by extension worldwide. To the point that it is doing a lot of damage to their economies. Because in effect, the current price of the price of a barrel of crude has risen to about 90 dollars, a level that had not been seen in financial markets for a long time. Despite the interests of some international organizations for it not to be the case. But it is true that it is weighing on the interests of small and medium investors, as has advanced a large part of financial analysts.
On the other hand, indicate that crude oil is a very relevant parameter to know where the stock market is moving. As is happening these days and that they are about to end the upward trend in the stock markets that has been generated for so many years. Practically since the economic crisis ended and that has led to the capital gains have been installed in investors' accounts for a good period of time. Therefore, it will be necessary to be aware of the black gold prices from now on.
Political instability in Spain
Of course, the political issue is another of the negative factors to have reached the current price level. With a minority government And with a series of economic measures that the financial markets have not liked, it is not surprising that the Spanish stock market has slipped down in this period. In addition, it cannot be forgotten that there may be elections in the coming months and this fact does not appeal to the markets and investors either. Where sales are clearly being imposed on purchases and this is materialized in the depreciation of the share price.
One of the most relevant aspects has been the job destruction at the end of the holidays, with one of the worst levels in recent years. Being another of the factors that is driving investors away from the stock markets. Because in effect, the doubts that assail these agents are many and of a diverse nature and this is something that is playing against the interests of financial agents linked to equities. Without so far there have been any signals to calm the financial markets. For this reason, the current downtrend may still last for a long time.
Problems in the Community Union
Nor does what is happening in the community zone benefit the stock market. Where there is more division than ever and at any moment everything can explode. With some traditional parties that are in a frank decline in benefits from other alternative forces that are gaining the trust of the voters. Despite what many people may think, this is another factor that is trading on the stock market and especially in ours, which is one of the weakest in the old continent.
It should be borne in mind that the different European stock exchanges are not doing well either, but rather the opposite. The reason must be sought for certain political news that is developing in the euro zone. A geographical setting where it is not very profitable to make profitable savings at this precise moment. But on the contrary, go to other destinations that are having a better evolution in their respective stock market indices. As for example, in the US equities, one of the most bullish in the world.
Bank weakness
The national stock market is being seriously affected by the actions of the banks on the stock exchange. To the point that it is the worst sector in Spain, with a significant depreciation in the price of its shares. It is not the best of places to be right now. Not much less. Since the outlook for this important sector is not the best that small and medium investors can expect. There is much more that can be lost than gained and this is a strategy that you should keep in mind from now on.
The divergences that Spanish banks find with respect to other sectors in the stock market are more than notable and in some cases above 5%. However, some believe that their recovery power may be higher due to the fact that they have fallen so much in the stock market. Either way, banks are one of the biggest losers in the first nine months of the year. With depreciations that reach levels of almost 10%, which is saying a lot in a stock market exercise.
Taking a breather in investors
On the other hand, there is also a certain fatigue on the part of investors. Not surprisingly, they have been many positive years and it is time to reap benefits. In particular, given the signs of weakness that the financial markets are offering. Because there will be time to buy the shares at a much more competitive price and that it can make operations more profitable. Because it cannot be forgotten that nothing goes up forever, much less the stock market, as you yourself will know from the accumulated learning over years and years.
In any case, they will be waiting for market conditions to be the best again. Among other reasons because there are not excessive alternatives to make the savings profitable, especially through fixed income products. With a low profitability that is not making it interesting to all investors. This is what analysts allude to to say that the stock market will have to resume the upward path during the next year. Although now the conditions are not the best to take positions in the stock market.