Walter Finch
SPAIN’S stock market, the IBEX 35, has broken the 15,000-point barrier for only the second time in its history.
The country’s benchmark stock index closed at 15,021 points on August 13, equalling levels last seen nearly 18 years ago at the peak of the 2007 property boom.
Back then, the milestone was reached in the middle of Spain’s notorious housing bubble, which burst a year later and triggered a deep recession.
But Transport Minister Oscar Puente insisted that this time the rise is built on solid ground.
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“The IBEX 35 surpasses 15,000 points for the second time in history,” he wrote on X.
“The first was 18 years ago, during the housing bubble. Today, our economic situation does not reflect any kind of bubble, but solid foundations. It is yet another indicator of Spain’s good performance,” he added.
The IBEX has rallied by more than 1% this week and is now up almost 30% so far this year, making it one of the strongest performing markets in Europe.
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On Friday it closed at 15,277 points, its highest finish since the 2007 peak, after ten consecutive days of gains.
The surge in Spanish shares mirrors a wider global rally. Analysts at Société Générale highlighted the rare combination of falling interest rate expectations and strong corporate profits as key drivers.
Investor optimism has soared after US inflation data reinforced bets on a September rate cut by the Federal Reserve, with markets now pricing in two or three cuts before the end of the year.
The upbeat mood has also been fuelled by resilient earnings, fewer trade worries and hopes of a ceasefire in Ukraine. The VIX volatility index, often dubbed Wall Street’s ‘fear gauge’, has dropped to its lowest level of the year.
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But Société Générale warned of ‘possible excess optimism’, noting that the scale of expected US rate cuts has never before occurred without a sharp drop in company profits.
The index, which groups together 35 of Spain’s biggest companies, previously peaked at 15,945 in late 2007 and briefly touched 16,000 in intraday trading before collapsing as the global financial crisis hit.
Today’s rally marks the first time since then that Spanish equities have returned to such heights.
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