Spain’s IBEX Worse Performing European Stock Market in 2021, Finished Up 7.9%

The Spanish Blue-Chip IBEX 35 closed 0.46% higher at 8,713.80 on the final trading day of 2021 and up 7.9% in 2021. The market recovered from being down 15.5% in 2020 when it was its worst year since 2010. Spain’s index is well off the multi-year low of 5,815 on March 16th, 2020, as coronavirus fears and lockdown measures hit a crescendo.

Germany, Spain and Italy were among the major European bourses closed for the New Year’s Eve holiday

The IBEX 35 was restrained by the November inflation coming in at a year-on-year increase of 5.5%, the highest rate since October 1992. In March 1992 it was came in at 6.9%. Last year the index 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 2020 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 European and UK Largest Caps Fared in 2021

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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