The Stock Market has taken a run in the face of the , which for the Spanish market is bringing one of the best streaks of the year. The Ibex has managed to break a new high by exceeding 16,600 points for the first time and advancing 1.4%. The increase in just three days is 4.5%, since the United States Senate opened the way to the end of the federal closure over the weekend and returned investors’ appetite for risk.
Investor sentiment improves for US technology stocks and helps European indices sustain gains. The German Dax has advanced 1.2%, while the Euro Stoxx and the Paris Cac have gained more than 1%. And this despite the fact that there are doubts on Wall Street, with the S&P 500 ending the session in a draw and the Nasdaq subtracting 0.3%, while the Dow Jones has managed to revalidate its highs thanks to the advance of the financial sector.
“Once the normal functioning of the North American Administration is recovered, attention will be on the publication of the numerous macro references that have not been known in the last month and that will be relevant for the decision-making of the Federal Reserve (Fed), while the market will pay special attention to the official employment data for September and October,” explains Renta 4.
Citi experts trust that “statistical agencies will provide guidance on the release dates of delayed data reports in the coming days.” In his opinion, the September employment data was almost ready to be published before the closure and could be published on Friday, although it is “more likely to be published on Monday or Tuesday.” While they estimate that we will have to wait until early December to know the October data and consider that “it will be useful” for the Fed Open Market Committee on December 10 to know the November data, although, they comment “it is not clear if it will be published as scheduled or will be delayed.”
Banking has acted as a catalyst for the Spanish stock market, where the Ibex banking sector has advanced more than 7% in the last three days. This Wednesday Santander and CaixaBank added more than 2.7%, while Unicaja, Bankinter, BBVA and Sabadell advanced more than 1.4%. Next to them is Solaria, which rises 3.8% and leads the advances of the selective, followed by Acciona and Grifols with increases of 3%. On the other hand, only five stocks opt for falls: Repsol, Indra, Fluidra, Telefónica and Enagás fell between 0.9% and 0.3%.
In the currency market, it is trading stable at $1.1595. Oil, the benchmark in Europe, fell 3.7% to $62.7 per barrel due to concerns about excess supply. In the debt market, 10-year bonds are increasing in profitability in Europe and the United States.
“What I see is an air of optimism and momentum in the United States,” Roland Kaloyan, head of European equity strategy at Société Générale, told Bloomberg. “Markets are buying 2026 options thanks to a positive combination of strong growth, investments in AI, Federal Reserve cuts and a weaker dollar.”
The resolution of the last four partial closures of the Administration in the United States has boosted the S&P 500 and most of its sectors, according to the average profitability collected by Bloomberg. Stocks rose after every partial shutdown since 1995 except early 2018, with consumer stocks leading the way. Given this week’s 1.8% advance, with signs of a deal, markets may have already priced in some of the usual post-close rally.
“With the government shut down and the release of key economic data delayed, the real challenge is not the short-term drag on growth, but the increasing difficulty for investors and the Federal Reserve in assessing the economic outlook,” says Seema Shah of manager Principal Asset Management. “However, as data releases resume, the possibility of a rate cut by the Federal Reserve in December should re-emerge, reinforcing a risk-friendly environment.”
“There was always a risk that if the shutdown was prolonged, growth would be affected and therefore the data would be difficult to interpret,” Michael Metcalfe, head of macroeconomic strategy at State Street, told Reuters. “So the fact that we have finally overcome the lockdown is a relief, as a significant slowdown in growth is not expected as a result of it,” he adds.
The United States House of Representatives prepares this Wednesday to vote on the key bill that will end the longest government shutdown in the country’s history, after six weeks of paralysis and clashes between Republicans and Democrats. The blockade resulting from the political confrontation has left more than a million federal employees without pay, affected food assistance programs and caused thousands of airline cancellations and delays.
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