Ibex 35 Surprises With Improved Performance

Breaking Against Negative Trends of Previous Years

The Ibex 35 index outperformed its European peers in 2023, breaking a trend of underperformance in recent years. The index gained 8.8% in 2023, compared to a 2.5% gain for the Euro Stoxx 50 index. This outperformance was driven by a number of factors, including strong corporate earnings, a weaker euro, and positive economic data.

Factors Contributing to Outperformance

One of the key factors contributing to the Ibex 35's outperformance was strong corporate earnings. Spanish companies reported strong earnings growth in 2023, driven by a number of factors including increased demand for their products and services, cost-cutting measures, and a weaker euro.

Another factor that contributed to the Ibex 35's outperformance was a weaker euro. The euro fell against the US dollar in 2023, making Spanish exports more competitive on the global market. This helped to boost corporate earnings and economic growth in Spain.

Finally, the Ibex 35 also benefited from positive economic data in 2023. Spain's GDP grew by 2.1% in 2023, above the Eurozone average of 1.9%. This growth was driven by strong domestic demand and a recovery in the tourism sector.

Outlook for 2024

The outlook for the Ibex 35 in 2024 is positive. The Spanish economy is expected to continue to grow, and corporate earnings are expected to remain strong. In addition, the weaker euro is likely to continue to support Spanish exports. As a result, the Ibex 35 is expected to continue to outperform its European peers in 2024.