Geopolitical Tensions and Tech Doubts Pressure European Markets, Ibex Falls

The Ibex 35 closed the week at 19,216 points, a decline of 0.87%, as geopolitical tensions in the Middle East and growing doubts about the technology sector weighed on investor sentiment. Source: elespanol, elconfidencial

What happened

European stock markets posted losses across the board. The Ibex 35 fell 0.12% on Friday alone, while the DAX lost 0.07%, the CAC 40 dropped 0.5%, and the Euro Stoxx 50 fell 0.76% Source: elespanol. Earlier in the week, the Ibex had breached 19,200 points temporarily on Tuesday Source: infobae. Oil prices surged, with Brent crude rising nearly 3% on Friday to $86.72 per barrel, marking a weekly gain of almost 10% Source: elespanol.

Causes

Two main factors drove the sell-off:

• Escalation in Iran conflict: The US and Iran continued exchanging attacks near the Strait of Hormuz, threatening oil supply. On Monday, the US destroyed a tanker bound for Iran, and on Friday, oil prices spiked 3% Source: elconfidencial, elespanol.
• Tech sector doubts: Even strong earnings from TSMC failed to reassure investors about artificial intelligence valuations. The semiconductor index fell 3%, dragging the Nasdaq Source: elpaises. The "tepid reception" of solid results served as a warning about market concentration Source: elpaises.

Stock movers

Within the Ibex, Endesa (+2.02%) and Enagás (+1.69%) led gains on Friday, while Solaria (-2.74%) and Amadeus (-2.26%) were the worst performers Source: elespanol. Over the week, banks and energy stocks were mixed, with Indra rising 1% on some days.

Outlook

Analysts remained cautious. The US Federal Reserve's Beige Book indicated moderate price increases, but the conflict in Iran kept inflation concerns alive Source: elconfidencial. Some economists, like Tiffany Wilding of Pimco, argued that rate hikes are unlikely in July Source: elpaises.