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The Ibex-35 rises timidly pushed by the bank after the Fed’s announcement

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March 22 (Reuters) – The main index of the Spanish stock market opened with a timid rise on Tuesday, waiting for new references and pushed by banks after comments from the Fed that point to more increases in interest rates.

Fed Chairman Powell reiterated after the previous session his plan to ruthlessly fight inflation by raising interest rates.

“Powell is also contributing to the rise in rates (in the market), who in his conference yesterday sounded even more ‘hawkish’ (in favor of tightening monetary policy) by not ruling out increases of more than +25 bp in his next meetings and the possibility of moving rates above their neutral level (2.4%) if necessary,” the income4 analysts wrote in a note.

Inflation also occurs in Europe, so the tension of the war continues to affect the supply ladders and the cost of fuel. The war continued its course due to the Ukrainian refusal to deposit weapons, and President Biden announced the possibility of Russia using chemical weapons.

The war offensive has aggravated the scarcity of raw materials and has reduced risk appetite among investors. Russian crude lost ground in Europe after the sharp rise the day before, while the EU has not yet decided on the prospect of joining the US embargo on Russian crude, a delicate decision since 40% of the European energy market depends on it.

Thus, at 08:17 GMT on Tuesday, the selective Spanish stock market Ibex-35 rose 23.00 points, and 0.27%, to 8,412.20 points, while the index of large European securities FTSE Eurofirst 300 advanced and 0.14%.

Financial entities were one of the main drivers of the Ibex at the beginning of the day, since Powell’s announcement revalued the sector in view of the prospect of a rise in the cost of loans worldwide.

Santander rose and 0.72%, BBVA and scored and 0.79%, Caixabank advanced and 0.58%, Sabadell won and 1.98%, and Bankinter and revalued and 0.87%.

Some raw material stocks also pushed up the Ibex, with ArcelorMittal SA leading the board with a 2.0% rise on rising material prices.

Among the large non-financial stocks, Telefónica scored 0.14%, Inditex lost 0.19%, Iberdrola revalued 0.45%, Cellnex fell 1.02% and the oil company Repsol rose 0.79% .

(Information by José Muñoz, edited by Tomás Cobos)

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