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The Ibex 35 is down 5% on the week, marking a minimum since November 2020

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By the end of this Friday, it was down 2.46%

MADRID, September 23 (EUROPA PRESS) –

The Ibex 35 fell 5.02% in a week marked by central banks’ decisions to tighten monetary policy amid inflation and mounting fears of an economic recession.

The final session of the week was particularly negative for the Ibex 35, which is down 2.46% to fall to 7,583.5 points, a level not seen since November 2020.

Fluidra recorded an increase of 2.64% in the session and Siemens Gamesa closed flat, while the rest of the stocks of the Spanish range presented declines, recorded for Grifols (-7.86%), Repsol (-5.33% ), IAG (-4.17%), Meliá (-3.98%), Inditex (-3.84%) and Solaria (-3.53%).

The US Federal Reserve on Wednesday unanimously approved a third straight rate hike of 75 basis points, bringing it to a target range of between 3% and 3.25%.

This is the country’s highest cash price since January 2008, just months before this year’s crisis with the bankruptcies of Bear Sterns and Lehman Brothers sparked.

Additionally, the preliminary releases of the services and manufacturing PMI on the last day of the week “disappeared any possibility of recovery,” pointed out XTB analyst Darío García.

For example, private activity in the euro zone as a whole declined in September before falling to a 20-month low, as reflected in the composite purchasing managers’ index (PMI) compiled by S&P Global, which stood at 48.2 points, from 48.9 in August.

A recession is looming for the euro zone as companies point to deteriorating business conditions and mounting price pressures combined with rising energy prices. Intelligence agency Chris Williamson estimates a contraction of 0.1% of GDP in the third quarter.

Within the selection, only Banco Sabadell and Bankinter saved the week with gains, while on the downside Solaria and Grifols stand out. “General sentiment is biased toward a recessionary scenario, with the Ibex 35 bottoming out in 2022,” the analyst pointed out.

The rest of the European equity markets also ended the session down, 1.97% in London, 2.28% in Paris, 1.97% in Frankfurt and 3.36% in Milan.

On the other hand, the price of a barrel of Brent oil, a reference for the old continent, was $86.24, down 4.67%, while Texas stood at $78.89 after turning around 5.51% had fallen.

Finally, the euro was priced at 0.9722 “greenbacks” against the dollar, while the Spanish risk premium was 111 basis points, with the interest required on the 10-year bond amounting to 3.169%.

Looking ahead to the week ahead, investors will be watching for preliminary PMI releases from some of the major economies, as well as for speeches from members of the Federal Reserve and the European Central Bank.

“They have to justify and defend their position in the face of the rise in interest rates and the perception of the economy and the potential risk of recession,” García stressed.

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Source europapress.es

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