- SERIX® sentiment index on IBEX 35 reached a two-year high of 114 in October 2023
- Anticipation of an end of ECB’s longest tightening cycle supports bullish sentiment across most major European stock indices
- 179 million securitised derivatives traded on Spectrum in October, the highest ever volume of instruments traded on the venue
Spectrum Markets (“Spectrum”), the pan-European trading venue for securitised derivatives, has published its SERIX® sentiment data for European retail investors for October, revealing a sharp increase in sentiment towards the IBEX 35 index, marking a two-year high of 114 points. The Spanish benchmark index IBEX 35 comprises the 35 most traded Spanish stock corporations traded on the Madrid Stock Exchange.
The SERIX® value indicates retail investor sentiment, with a number above 100 marking bullish sentiment, and a number below 100 indicating bearish sentiment. (See below for more information on the methodology).
Market opinion
“The IBEX 35 hovered around 9,000 points towards the end of October, after hitting several peaks above 9,500 points throughout the year. Retail investors may have seen this as a potential entry point, leading to a two-year high SERIX® sentiment on IBEX 35, with 114 points, indicating a clear bullish sentiment on the Spanish index,” explains Michael Hall, Head of Distribution at Spectrum.
“Despite the complex political scenario in Spain, the forecasts for strong corporate earnings in Q3 have been positive, particularly for financial companies, which are heavily represented in the IBEX 35. This, together with the market's expectations of ECB interest rate hikes coming to an end, likely played a role in driving bullish sentiment towards the Spanish index," concludes Michael Hall.
Spectrum’s October data
In October 2023, 179 million securitised derivatives were traded on Spectrum, the highest ever volume of instruments traded on the venue, with 34% of trades taking place outside of traditional hours (i.e., between 17:30 and 9:00 CET).
88.8% of the traded derivatives were on indices, 7.1% on currency pairs, 2.7% on commodities, 1.3% on equities and 0.1% on cryptocurrencies, with the top three traded underlying markets being DAX 40 (31.3%), S&P 500 (22.8%), and NASDAQ 100 (18.9%).
Looking at the SERIX® data for the top three underlying markets, the DAX 40 remained neutral at 100, the S&P 500 decreased slightly from 108 to a consistently bullish 105, and the NASDAQ 100 also saw a slight decrease but remaining bullish at 101.
Calculating SERIX® data
The Spectrum European Retail Investor Index (SERIX®), uses the exchange’s pan-European trading data to shed light on investor sentiment towards current development in financial markets.
The index is calculated on a monthly basis by analysing retail investor trades placed and subtracting the proportion of bearish trades from the proportion of bullish trades, to give a single figure (rebased at 100) that indicates the strength and direction of sentiment:
SERIX® = (% bullish trades - % bearish trades) + 100
Trades where long instruments are bought and trades where short instruments are sold are both considered bullish trades, while trades where long instruments are sold and trades where short instruments are bought are considered bearish trades. Trades that are matched by retail clients are disregarded. (For a detailed methodology and examples, please visit this link).
About Spectrum Markets
Spectrum Markets is the trading name of Spectrum MTF Operator GmbH. Headquartered in Frankfurt am Main, Germany, it is a pan-European trading venue for securitised derivatives aimed at financial institutions and their retail investors. Since launch, trading has been available in: Germany, France, Italy, Spain, Sweden, Norway, the Netherlands, Ireland, and Finland.
Acting as a MiFID II regulated trading venue authorised and supervised by BaFin, the exchange uses a uniquely open architecture system to allow investors to trade with increased choice, control and stability. Through its pan-European ISIN, 24/5 trading services and its own proprietary venue, Spectrum enables a guaranteed baseline level of liquidity over a range of products and is able to swiftly and safely match a significant number of orders and process multiple quotes every second.
Spectrum Markets is a wholly owned subsidiary of IG Group (LSEG: IGG).
Further information can be found at spectrum-markets.com
Media contact
Liminal
T: +44 203 778 1103
E-Mail: vasiliki@liminalcommunications.com
Disclaimer
All information contained herein is for information purpose only and addresses exclusively Members of Spectrum Markets and persons interested in becoming a Member of Spectrum Markets. Nothing herein constitutes an offer to sell or a solicitation of an offer to purchase any securitised derivatives listed on Spectrum Markets or any product described herein. Spectrum Markets does not provide financial services, such as investment advice or investment brokering. Prospective retail investors can trade such products only with their brokers. The information herein does not constitute investment advice or an investment recommendation. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
