Ibex 35 He has not been able to forget the setback of the previous day and has ended this Thursday in a negative spirit. Selected shares of the Spanish stock market registered a gain of 0.75% to 8,040.7 points. In line with declines in most European and Wall Street stock markets.
Ibex 35 has not been able to resume its uptrend after falling 1.06% on Wednesday. On that day, geopolitical tensions were the protagonist after the incident in Poland, where two people died as a result of explosions caused by the impact of missiles.
Main European stock markets have opted mostly in the red after learning it Year-on-year inflation in the euro area was 10.6% in October. The figure represents a new all-time record and an acceleration of seven tenths compared to September’s figure, despite an increase in interest rates by the European Central Bank (ECB).
The underlying rate has reached a record 5%, two tenths higher than in September. Both levels are a far cry from the ECB’s 2% objective, which justifies the institution to keep raising interest rates to try to prevent a rise in prices.
On Wednesday it was published that the UK Consumer Price Index (CPI) rose to 11.1% in October under pressure from energy and food. Data encourages the Bank of England to continue raising reference rates, although the development of monetary policy will also depend The new medium-term financial plan presented by the British government this Thursday.
As Britain’s finance minister, Jeremy Hunt, explained, he explained that the budget contemplates tax increases, including an increase in the rate applied to extraordinary profits from energy companies, and a reduction in the upper tax bracket limit on income that would be affected. Increase in the number of taxpayers. It is also confirmed that the country is in recession.
European stock markets stumble with fresh cuts on Wall Street, due to a new warning from United States Federal Reserve (Fed) About the upcoming rate hike.
St. Louis Fed President James Bullard said on Thursday that even under an “accommodative” analysis of monetary policy, the US central bank should continue to hike benchmark rates by at least another percentage point, arguing that yet The increase “had only a limited impact on observed inflation.”
In the United States, retail sales increased by 1.3% In the tenth month of the year, a figure higher than expected by experts, compared to the previous one. “This upbeat data reminded markets that the level and timing of the arrival of interest rates is still to be confirmed,” The pivot of the Federal Reserve (Fed) is not yet clearRent is also considered in 4.
in an interview given to wall street journalEsther George, president of the Kansas City Fed, said it was possible. The central bank cannot cool inflation well enough without inducing recession.
His San Francisco colleague, Mary Daly, clarified that The Fed is not thinking of stopping its rate hike And it could still raise them more than 1% from current levels. In addition, Christopher Waller, the governor of the US central bank, reiterated what he had said a few days earlier: that The organization still has a way to go Regarding rate hike.
“These statements come in a certain way to confirm investors flock While discounting that the central banks are close to finalizing their process to roll back monetary stimulus”, the Link Securities analysts underlined.
After the end of the session of the European stock exchanges, euro It lost ground against the dollar and moved away from the ‘green bill’ at 1.04 while turning at 1.032.
At the same time, brent oilThe reference in Europe was dropped, up 2.85%, to $90.20 a barrel.
European crude oil prices fell a day earlier after Russian oil pipeline operator Transneft announced plans to resume pumping crude in the direction of Hungary. Analysts are also eyeing Iraq’s chances of increasing its oil production.
debt market, Spanish 10-year bond interest dropped to 3.04%However, it declined by 3% in the mo of the session, while the risk premium fell to 101.65 basis points.