The IBEX 35 A turbulent week for the markets ends on a positive note. The national index has accumulated a rise of 1.33% in the last five sessions, marked by the first rate hike by the European Central Bank (ECB) in eleven years and by the political crisis in Italy.
With this new weekly preview, the Ibex 35 has stopped a negative streak of three weeks. This has been settled with three sessions on the rise and another two, in negative.
The rise that the Ibex 35 has scored this Friday has been 0.49%, enough for the national index to have reached 8,051.6 points, despite the decline in banks and other large securities.
Among the biggest falls, those of Bankinter (5.78%), Sabadell (4.81%) and CaixaBank (3.55) stand out. The greatest revaluations have been those of Solaria (4.90%), Cellnex (3.77%) and Merlin Properties (3.75%).
The Spanish index has led the advances in a new positive day for the European stock markets despite having known a negative economic data.
[La cartera de acciones de Eduardo Bolinches para la sesión de hoy]
According to the PMI index compiled by S&P Global, activity in the euro zone contracted in july for the first time since confinement early 2021, marking its lowest in 17 months, due to weak demand and strong inflation.
Said index, published this Friday, stood at 49.4 points in July, below the 52 in May and the 50 that separate growth from contraction.
With the exception of those first few months of the pandemic, July’s contraction is the first signaled by the PMI index since June 2013 and indicates that the economy is contracting at a quarterly rate of 0.1%.
Thus, the Ibex 35 and the rest of the main European indices have ended a week full of references for the financial markets on the rise. In it, investors have been aware of inflation, central bank policy, the political situation or business results.
Last Tuesday, it was confirmed that, in June, inflation reached 8.6% in the eurozone in interannual rate. The figure represented the highest increase in prices in the euro region in the entire historical series.
After knowing the data, different information appeared that suggested that the members of the ECB were discussing the possibility of raising interest rates by 50 basis points, and not 25, as the institution had reiterated on several occasions.
[El BCE crea una red de seguridad para países endeudados como España que permite subir tipos más rápido]
Finally, the Governing Council of the ECB decided to raise rates by half a point. The institution chaired by Christine Lagarde also presented its anti-fragmentation tool, which it has called Transmission Protection Instrument (Transmission Protection InstrumentTPI), whose main objective is to avoid a new debt crisis in the eurozone.
This Friday, and after the last uploads, the euro has lost some ground against the dollar and 1,022 ‘greenbacks’ have been exchanged.
The announcement of the TPI by the European institution served to contain the yields of the bonds and the risk premiums. In the case of Spain, the interest required on the 10-year debt has been reduced to 2.25%, while the spread has relaxed to 124 basis points.
Both the bonds and the risk premiums of European countries, especially those on the bloc’s periphery, had skyrocketed as a result of the political crisis in Italy.
ANDhe President Italian, Sergio Mattarella, accepted on Thursday the resignation of Prime Minister Mario Draghi, one day after the former president of the ECB lose the support of his government partners again in the framework of a new matter of confidence in the Senate.
The Italian political crisis has therefore led to the dissolution of parliament and the call for legislative elections to be held on September 25.
The elections “come at a very delicate moment for the country and for the Eurozone as a whole. Furthermore, their outcome does not ensure that Italy will have a strong new government that will face the economic crisis with full guarantees”, explain the analysts at Link Securities.
On Wall Street, attention has been captured by business results. While the results of Netflix and Tesla have been well received by investors, Twitter and Snap have priced their numbers lower. Snapchat’s parent company has even sunk more than 35%.
Waiting for the Fed
Outside the technology sector, the results of American Airlines, AT&T or J&J were also not liked, but those of American Express were. Thanks to the increases of the financial company, the Dow Jones got rid of the declines that the S&P 500 and the Nasdaq recorded at the close of the session in Europe.
Next week the trickle of business results will continue. Without leaving the great technology giants, in the next sessions, Meta, Amazon, Alphabet or Apple will report their results.
[Los mercados respaldan el nuevo rumbo de Netflix tras apostar por la publicidad y moderar su gasto en contenido]
But next week’s most important reference will be the meeting of the US Federal Reserve (Fed). The market expects that on Wednesday the institution chaired by Jerome Powell will increase its interest rates by 75 basis points to curb inflation, although an increase of one point was even suggested.
A day later it will be known the first reading of the US gross domestic product (GDP) of the second quarter of the year. Forecasts suggest that it will return to an economic contraction, as happened between January and March.
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