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Saturday, January 28, 2023

The Ibex 35 moderates its rise to 0.3% and fails to hold the 8,400 integers



The Ibex 35 moderated its rise to 0.33% by the end of the session, which has seen it stand at 8,380.0 integers after touching the 8,400 point level just after midday, on a day that still has to go was dominated by the US CPI data released yesterday.

The North American country’s CPI surge of 8.5% in July – compared to 9.1% in June – managed to provide some lift to the main stock market indices yesterday, although moderation regained the upper hand today after some members of the US The Federal Reserve (Fed) still considered inflation to be “too high”.

Paolo Zanghieri, senior economist at Generali Investments, noted that while it appears that peak inflation may already be in place, which could lead to a slowdown in the pace of rate hikes, “the Fed’s task remains very difficult”.

“The very positive employment numbers of the past week and the ongoing signs of wage increases show that the labor market is following a very positive growth pattern,” said the expert.

As such, he believes the Fed’s “limited and tentative progress” on inflation “is not enough to move towards a much less aggressive normalization rate,” and maintains his forecast that the central bank will make a 50 basis point hike in September “with some risk of another move of 75 basis points, like in July.”

On the other hand, Renta 4 experts today emphasized the slowdown in demand for chips and their possible transfer to the global economy, after South Korea recorded a slowdown in exports of technological material for the first time in two years.

They also highlighted the end of Chinese military maneuvers around the island of Taiwan, despite threats that exercises could be more frequent after United States House of Representatives President Nancy Pelosi decided to visit the island of China as one of its provinces and therefore not independent.

Coming back to the Ibex 35, although it didn’t close above the 8,400 wholes level, this is its eighth consecutive rise, marking its best streak since September 2018 when it chained ten consecutive rises. Additionally, it has been making highs since June 10th when it closed at 8,390.6 integers.

At close of trade, the biggest gains were Repsol (+2.16%), Solaria (+1.75%), Cellnex (+1.56%), Ferrovial (+1.21%) and Grifols (+0.87%). . Opposite were Amadeus (-2.02%), Indra (-1.55%), IAG (-1.47%) and Bankinter (-0.94%).

The rest of the European equity markets ended with mixed behaviour, with losses of 0.55% in London and 0.05% in Frankfurt, while Paris gained 0.33% and Milan 0.69%.

Likewise, the price of a barrel of Brent oil, a reference for the old continent, was $98.59, up 1.21%, while Texas was $93.21, up 1.39 %.

Finally, the euro was priced at 1.0338 “greenbacks” against the dollar, while the risk premium was 108 basis points and the yield on the 10-year Spanish bond was 2.048%.


Source europapress.es

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