Ibex Plunges Amid Hornuz Tensions and ECB Decision Looms
The Spanish Ibex 35 index plummeted by 1.51% on Wednesday, with investors weighing the impact of escalating tensions in the Strait of Hormuz and awaiting the European Central Bank's interest rate decision due Thursday.
The widespread losses were triggered by the military escalation between the US and Iran, which has pushed oil prices higher, with Brent rising above $101 per barrel. This surge is a significant concern for markets already grappling with inflationary pressures and central bank moves.
Despite Inditex announcing a record net profit of 2.980 billion euros in the first half of its fiscal year, the stock fell by 3.61%, making it one of the most severely hit companies in the Ibex.
The only four stocks that managed to close in positive territory were Repsol, Endesa, Iberdrola, and Redeia, with Repsol leading the gains at 1.69% due to its exposure to rising oil prices.