Monday, June 5, 2023

The Ibex closes the week with a fall of 0.65% due to uncertainty over the US debt ceiling


Ibex 35 closed the session this Friday at 9.191.1 points, which means that it has fallen by 0.65% in the week, after several days in which concern was raised in the United States of America regarding the country’s debt ceiling.

This Friday finally closed with an increase of 0.82%, after the election fell 0.3% in the first trading hours.

“The Spanish stock market was pushed down for the second week in a row by the loss of confidence due to the prolonged negotiations on the extension of the debt ceiling in the US and economic data published this week. In Germany, it has technically entered a recession after accumulating two consecutive quarters of negative growth, although the ECB continues its intention that two or three times more time to stay in exciting interest,” explained XTB analyst Joaquín Robles.

In the macroeconomic field, this week it is also known that the gross domestic product (GDP) of the United States grew by 0.3% in the first quarter, the same figure that was initially estimated.

On the other hand, inflation in Britain fell in double digits for the first time in seven months, reaching 8.7% last April.

In this context, in the session held this Friday, Fluidra’s main value rose (+2.11%), ahead of ArcelorMittal (+1.80%), Indra (+1.67%), Rovi (+1.64%), CaixaBank (+1.63%) and Maple (+1.56%).

On the downside were Solaria (-0.94%), Sacyr (-0.89%), Acciona Energías Renovabiles (-0.63%), Argentarius (-0.62%), Unicaja Banco (-0.53%), IAG (-0.28%) and Action (-0.28%).

In this context, the German DAX index advanced 1.20% this Friday, while the French CAC 40 rose 1.24% and the Italian FTSE MIB rose 1.16%. In this way, the Euro Stoxx 50 grew by 1.59%, while the British FTSE 100 advanced by 0.74%.

At the end of the trading session, the European Brent barrel was trading at $76.74, up 0.63%, while the West Texas Intermediate was at $72.51, up 0.95%.

In the debt market, 10-year Spanish bond yields closed the week at 3.605%, compared to 3.591% on Thursday. Thus, the risk premium against German bonds stood at 106.8 basis points, a tenth less.

In the foreign exchange market, the euro decreased by 0.07% against the dollar in the last trading session, reaching 1.0718 “green tickets” per euro.

Next week continues to mark the debates on the debt ceiling, since a meeting is expected in the coming days. The London Stock Exchange will be closed on Monday as it is a bank holiday, and the United States Stock Exchange as it is Memorial Day.

Also, on Tuesday, inflation data for Spain will be released, while on Wednesday it will be published for the European area, along with work in Germany. Various production data will be released throughout the week and on Friday in the United States they will announce their unemployment rate.

World Nation News Desk
World Nation News Desk
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