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The Spanish Blue Chip IBEX 35 closed 1% lower at 8,074 on the final trading day of 2020, down 15.5% for the year and the weakest stock index in Europe for the year in its worst year since 2010. Spain's index bounced off the multi-year low of 5,815 on March 16th as coronavirus fears and lockdown measures hit a crescendo.

 IBEX 2020

Spanish stocks recovered to 8,074 after the 5,815 low from Covid-19 pandemic lockdowns and Brexit uncertainty.

The IBEX 35 was wrecked by the Covid lockdowns more than any of the other major indices in Europe which also hampered recovery as a new variant of the virus exposed Europe in late December. Like all global stock markets market sentiment turned around from the March depths with the massive fiscal and monetary policy support by the ECB and globally and more recently roll-out of COVID-19 vaccines and a post-Brexit trade deal.

How Global Indices fared in 2020

The euro however rallied against the US dollar as massive US QE weakened the dollar and relief that the UK-EU free trade deal had been agreed boosted the euro. The stronger euro helped soften losses for overseas investors in the Spanish stock market.

EUR W 12 31 2020

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