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.
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.
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
- In the U.S. the S&P 500 and Dow closed at record levels at the year end.
- The tech heavy Nasdaq led the charge in 2020 up 43.64%, the largest gain since 2009
- S&P was up 16.26%. Since 2010 the S&P is up 240%, though 57% of the gain in the S&P was from just three stocks Microsoft, Amazon and Apple
- The Dow is closed up 7.25% after being down most tof the year, the DJIA was down over -36% at the March low
- In Europe the best performer was the German DAX which rose +3.6% for the year.
- Spain’s IBEX 30 was an even worse performer than the FTSE 100 down -15.5%.
- Italy’s MIB fell -5.4%,
- The French CAC 40 fell -7.1%
- The British FTSE 100 dumped. -14.3%
- The Australian ASX 200 Stock Market Closed Down 1.5% in 2020
- Japan’s Nikkei gained 16%,
- China’s Shanghai composite rose ripped 14% during 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.
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