IBEX 35 Price Sluggish, Spain Stock Index Lags Euro Area Peers
The IBEX 35 index continues to lag its Euro Area counterparts since March, when the Spanish index recorded its lowest level since 2003, as the COVID-19 pandemic sent global markets into a tailspin earlier this year. Since that March low, the index has rallied 13.4%. However, Germany’s DAX index is nearly 40% higher from the index’s multi-year low set on March 19.
IBEX 35 VERSUS DAX INDEX (DAILY CHART)
(Click on image to enlarge)
Chart created in TradingView by Thomas Westwater
Optimism seen across European markets in recent weeks reflects the broader appetite for risk seen through global equities as hopes for a vaccine fuel the outlook for a recovery from the current pandemic-induced economic conditions. Although, lagging performance for the IBEX index is not unusual. The Spanish index is one of the few European indexes that have failed to make new highs since the 2008 financial crisis.
IBEX 35 VERSUS DAX INDEX (WEEKLY CHART)
(Click on image to enlarge)
Chart created in TradingView by Thomas Westwater
While the IBEX started this week off on a strong foot, bulls have much more work to put in before a definitive trend higher can be established. Price action currently sits at 6701.7, slightly under the 23.6% fib retracement level, which bears have successfully defended twice over the past few weeks. Still, the index is without a clear direction as price continues to consolidate within the range set through the previous two months.
IBEX 35 (4-HOUR PRICE CHART)
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Source: IG Charts
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