The Ibex loses 8.3% in November, its worst month since March 2020 | Stock Market Chronicle

Pessimism has once again taken hold of the markets and the European stock markets have closed with cuts after the warning launched by Moderna about the lesser effectiveness of the vaccines against omicron and the comments of Jerome Powell. The Ibex has also suffered the setback registered by Inditex after announcing the relief in its presidency. The Spanish selective has left 1.78% to 8,305.10 points and ends November with a loss of 8.3%, in its worst month since the pandemic broke out in March 2020.

Yesterday's bullish truce has been short-lived. The red numbers have dominated the day in Asia, and are also making their way strongly on Wall Street. The omicron alerts raised multiple questions, but the most crucial in the analysts' opinion was to resolve doubts about whether the new variant is resistant to current vaccines. Pfizer gave itself two weeks to clear up the mystery, but Moderna has already issued a first warning. In the absence of more extensive evidence, their first conclusion is that omicron offers greater resistance to vaccines than the delta variant.

If Moderna's thesis is confirmed, it would be necessary to wait until the beginning of 2022 to have more effective vaccines against omicron, with the consequent scenario of health and economic uncertainty, which could open the way throughout the Christmas season. Fears of greater restrictions and even confinements have once again taken shape in the markets, which were facing one of the periods of greatest consumption of the year with hope. The economic forecasts, and business profits, could be altered if this scenario is confirmed.

The statements of Jerome Powell have also weighed in the falls of the stock markets. The president of the Federal Reserve (Fed) has warned that the rise in coronavirus cases and the new omicron variant could slow down progress in employment and economic growth, in addition to adding greater "uncertainty" about inflation. He has also stated that it would be appropriate for the central bank to consider accelerating the phasing out of the bond purchase program given the strength of the economy and the high rate of inflation.

Europe has left yesterday's bullish minitruce behind, as has happened in the Spanish stock market. The timid rebound of 0.62% in the Ibex from the previous session has given way to a new drop of 1.70% to 8,305.10 points. In November, the Spanish selective has left 8.3%, its worst balance since March 2020.

Despite omicron, the eyes and falls on the Ibex have focused today on Inditex. The company has announced the change in the presidency of the group. Marta Ortega will replace Pablo Isla from April 2022. Since the arrival of the manager to the group, in 2005, Inditex accumulated an 836% stock market rally. The price of the textile giant came from chaining unusual levels of volatility, due to the possible impact on its business of the omicron variant. To this impact has now been added the "surprise" with which the market has received the relief in the direction of the group, and its shares have suffered a setback of 6.10% and it has closed below the level of 28 euros.

The alerts activated by omicron have once again taken their toll on cyclical sectors and tourism companies. IAG (-3.32%), Amadeus (-2.75%) and Meliá (-3.67%) have closed lower due to fears of greater restrictions on air traffic and tourism. Aena has stood out with a slight advance of 0.12%.

Industrial companies such as Cie Automotive (-2.55%) have also stood out in the falls, along with values ​​linked to raw materials, such as Repsol (-1.22%), ArcelorMittal (-2.14%) and Acerinox (- 2.74%). Banks have also joined the cuts, with falls for Santander (-1.20%) and BBVA (-2.08%), from which Sabadell (+0.57%) has escaped

Among the members of the Ibex that have given continuity to the rebound, a defensive value such as Red Eléctrica (+1.16%) and Telefónica (+0.88%) stand out, which is close to the level of four euros per share in the midst of the resurgence of takeover bids in the European telecommunications sector.

The rest of the European stock markets have also closed with cuts, although lower than those of the Ibex, due to the uncertainty generated by the news about the greater immunity of the new variant of Covid to existing vaccines and the falls on Wall Street after Powell's comments . The German Dax has dropped 1.18%; the French Cac, 0.81%; the Italian Mib, 0.87% and the British Ftse, 0.44%.

Across the Atlantic, the Dow Jones has fallen 1.86% to 34,483 points. Apple (+3.16%) and Merck (+0.03%) have been the only selective values ​​that have escaped falls. Salesforce (-3.97%), Traveler (-3.58%) and American Express (-3.52%) were the most affected stocks. The S&P 500 has dropped 1.90%, to 4,567 points, while the Nasdaq has closed at 15,537 points after giving up 1.55%.

Investors have accelerated the sale of equities and have reinforced the purchases of fixed income within the more defensive profile that they adopt in the face of the threat that omicron represents. The arrival of new investments again deflates the interest on the debt. The ten-year US bond yield fell to +1.45%, well below the +1.67% just a week ago, before the omicron alerts. In Europe, the negative rates of the German bund are close to -0.35%, and in Spain the interest rate of the ten-year bond falls to +0.40%.

Volatility stars in the foreign exchange market. If the much higher than expected CPI data for the eurozone, 4.9% compared to the 4.5% expected, accelerated the euro's rise in the morning, Powell's words strengthened the dollar. Thus, the community currency lost 1.13 dollars again. The British pound, for its part, lost ground above 1.33 dollars, while the Swiss franc repeated its six-year high against the euro, at the level of 1.04.

Oil demand forecasts cool markedly as omicron economic threat takes hold. The barrel of Brent deflates to 68 dollars, and the West Texas-type barrel, a benchmark in the US, falls to 65 dollars.

Despite the more defensive profile of investors, the upward turn of the dollar leaves the price of gold at around 1,770 dollars per ounce. Bitcoin, meanwhile, falls to $56,000.