European stock markets closed with gains. The Stoxx 600 gained around 0.7%, accompanied by a decline in oil prices. The Spanish performance was less favourable due to the exposure of several companies to Brazil, on a day of strong movements in the country's assets.
Industrials and technology stood out during the day. Conversely, sales affected communication service stocks. Among companies, Santander fell nearly 4% following the country's election results.
By indices, the Ibex 35 recovered its initial losses, which had exceeded 1%, and ended 0.2% positive. The Eurostoxx 50 rose by 0.8%.
The reelection of Lula surprised Brazilian markets, with the Bovespa falling by as much as 17% and the real losing more than 10% against the dollar, leading to temporary interruptions in trading. The result reopened doubts about fiscal discipline, after investors had positioned themselves for a victory by his rival.
The German Ifo improved from 89.9 to 90.2 points in October, compared to the expected 90.1. It recorded six months of gains, with greater industrial strength and a deterioration in sentiment in services. The recovery of confidence continued to be gradual and uneven across sectors.
At the European close, the S&P 500 was up 0.7%, the Nasdaq 0.9%, and the Dow Jones 0.2%. Investors faced a week marked by the results of large companies and the decisions of the Federal Reserve and the ECB.
French debt received buying interest after Moody's maintained its rating at Aa3, although with a negative outlook. The decision alleviated fears of an immediate downgrade, but did not clear the difficulties in reducing the deficit. The spread against Germany narrowed, reflecting a specific improvement in French risk and not a widespread recovery of European bonds.
The 10-year German Bund yield was around 3.37%, with a rise of 2 basis points. In the United States, the 10-year US Treasury yield was around 4.98%, practically stable, with an increase of less than 1 basis point.
The Brent rose by 0.5%, reaching 117.3 dollars per barrel. Attacks against Saudi Arabia and threats to maritime transport maintained the risk of new supply disruptions.
The EUR/USD remained around 1.118, down by 0.2%. The meetings of the Federal Reserve and the ECB were the main monetary events of the week.