Global Stocks Defy Headwinds as Ibex 35 Shows ‘Unquestionable Strength’

A potential catalyst for a market correction, a criminal investigation into the U.S. Fed chairman, has instead faded into the background, having little impact on major global exchanges. In fact, several technical moves on Tuesday underscored the strength of the current bull run in equities.

Spain’s Ibex 35, for instance, saw a bearish feint followed by a sharp upward reaction after hitting a low of 17,400 points. This price action “once again demonstrates an unquestionable strength, the kind that does not usually appear in fragile markets,” said Joan Cabrero, a technical analyst and strategist.

“I still think there will be no reason to talk about buyer exhaustion in the short term as long as the index is able to stay, at this Friday’s weekly close, above the previous week’s lows,” Cabrero noted.

This sequence is what defines the market’s true pulse. A weekly close below 17,446 points would break that dynamic and begin to cast reasonable doubt on buying pressure. “As long as that does not happen, the dominant scenario remains one of bullish continuity,” he added.

Adding to the favorable context for the Ibex is a significant factor: this time, the Spanish index is not alone. “Paris and Frankfurt are accompanying the move after overcoming historical resistances at 8,330 and 25,000 points respectively, a support that usually provides reliability to the breakouts and coherence to the European market as a whole,” Cabrero highlighted.

The Paris stock exchange successfully held above the resistance levels it broke last week. This development clears up uncertainty and returns the French market—much like the German one—to the most favorable technical territory: an absolute free rise, or what some call ‘rocket mode’.

Early Election Rumors Send Japanese Stocks Soaring Over 3%

In Asian markets, bears have been notably absent in recent sessions, allowing bulls to run freely. Japan’s Nikkei index, for example, surged by as much as 3.6% on Wednesday.

Rumors of an early election in Japan spurred the nation’s stock market and government bond yields, which shot up on speculation that Prime Minister Sanae Takaichi might call a new vote. The yen, however, fell to its lowest level against the dollar since July 2024. Defense and nuclear firms were among the biggest beneficiaries of the move.

Market participants anticipate that the prime minister’s electoral gambit would consolidate her authority and provide new momentum to what is known as the “Takaichi trade”—a trend of stock market gains and bond losses that has intensified since she took office.