Friday, October 31, 2008

The Spanish stock exchange closes its worst month in 10 years

The Spanish stock market yesterday ended a month of heart attack. A real roller coaster in which the Ibex 35, its main indicator, has experienced ups and downs in history that will probably be remembered as the least suitable for cardiac conditions in history. This indicator stood yesterday at the close of the session at 9116 points, after a rise of 3.32% on the day. Evolution of the Ibex 35 GRAPH - El Pais - 31-10-2008 Historical evolution and black days of the Ibex 35 since 1987. - GUADALUPE CRUZ / Global financial crisis DEPTH See full coverage The news on other websites Websites in Spanish in other languages The rise of last week was the highest since September 2001 In October, the Ibex 35 lost 17.03%, making it the worst month of the Spanish market after last week of August 1998 when, in full Russian financial crisis, registered a fall of 21.24% . So far this year, the Spanish stock exchange accumulates a fall of 39.96%. October has been fateful for the majority of the values of the index. Only six companies, Iberia, BME, Banesto, ACS, Endesa and Enagas-arrive successfully at the end of the month with progress. The rest of the securities losses. Some as bulky as those of Gamesa, which fell by 46.92% in the month, followed by Sacyr Vallehermoso, with a fall of 33.44%, Acciona, which yielded a 30.62% and Repsol YPF, which is left 29% in the month. The rise in the Ibex 35 this week (an 9.13%) is the second highest increase recorded after the last week of September 2001, when prices rebound after the closure of markets after the attacks of 11-S . The day was marked yesterday by a fall of 2.3% percent of retail sales in Germany, data that dragged down the European shares during the first hours of negotiation, but at the end of the day regained positions. In London, the FTSE 100 rose 2.01% yesterday, to stand at 4377.83 points at the close of the meeting. The CAC 40 in Paris scored a breakthrough from 2.33% to 3487.07 points. The German DAX recorded a rise of 2.44% to 4987.97 points. Milan won a 2.88%, to 21,367 points. The drop in inflation in October to 3.2% in the euro zone and to 3.6% in Spain helped push up prices in the European places. On Wall Street, investors are encouraged to buy, two days after the Federal Reserve decided to lower the interest rate half a point in the U.S., up 1%. A media session, the Dow Jones moved a 0.84% to 9257.86 points. The Standard & Poor's rose a 0.92% to 962.87 points. The Nasdaq was placed at 1711.4 points, with a gain of 0.76%. The optimism in New York was imposed yesterday because of the fall of Libor, the interest rate on the interbank market in London that deposits in dollars for three months, stood at 3.03%, with a drop of 0, 16 points, according to the British Bankers Association (BBA). It also pushed up the results of the non-financial companies. According to data compiled by Bloomberg, the profits of nonfinancial companies in the Standard & Poor's index grew by 13% in the third quarter, compared to 4% from the previous three months. And a just months marked by increased volatility that has been seen in stock markets since the crash of 1929 and 1987. On October 10 the Ibex 35 experienced the worst session in its history (fell by 9.14%), which also ended its worst week in its history (it lost 21.2%). Falling rates concluded on October 8 between the ECB, the Fed and other central banks was not sufficient. Since then came the reaction. Following the measures announced by the U.S. and UK, the major European economies, France, Germany, Spain announced plans to rescue and injections of liquidity to their banking systems. While market confidence would suffer yet another varapalo the risk of contagion to emerging economies and the nationalization of Argentine pension

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