The Ibex 35 fell slightly 0.07%, to 9,195.90 points, after an intraday high of 9,272 points at the beginning of the day. This, after yesterday Wall Street ended the day negative (today it is trading with mixed earnings) after assimilating all the news from the Federal Reserve (Fed). The monetary body considerably raised inflation expectations for this year (general PCE: 3.4%) and brought forward the date for the rate hike to 2023, after anticipating in March that it did not see increases until 2024.
- 11.656,600
- 0,39%
However, the central bank did not give any indication on when it will begin to cut its aggressive bond buying program, although Fed Chairman Jerome Powell acknowledged that the issue was discussed during the meeting.
In the statement after the meeting, and despite this increase in expectations, the Fed continued to insist that inflationary pressures are "transitory." However, what analysts agree on is that the agency has been less 'dovish' and willing to act "if inflation expectations rise too high."
This advance of the rate hike date has led to initial gains for the banks due to the rise in the yield on the debt, which, however, have been reduced considerably at the end of the day.
In addition, Aena, Meliá and IAG have benefited from the fact that the United Kingdom is considering that tourists with a full vaccination schedule can travel to countries on the amber list, such as Spain, without going through quarantine on their return.
As negative factors, we highlight that the electricity companies have suffered on the stock market this day, since Iberdrola and Endesa have fallen more than 1%. And steel companies such as ArcelorMittal and Acerinox have led the declines within the Ibex.
Together with everything related to the Fed, investors have focused their attention on the end of May CPI in the eurozone, which has rebounded to 2%, the largest price increase since 2018.
Also, on the other side of the Atlantic, the Philadelphia Fed Manufacturing Index for June is down slightly to 30.7, in line with forecasts; and weekly claims for unemployment benefits have risen unexpectedly above 400,000, the highest for the last month (although a temporary rise has been considered).
THE BANK OF BRAZIL RAISES RATES
And if the Fed kept rates unchanged, the Central Bank of Brazil raised the basic interest rate this Wednesday 0.75 percentage points, to 4.25% annually, the highest level in a year and a half, and the third increase in 2021, in order to control skyrocketing inflation and with the coronavirus pandemic still out of control.
At this last meeting, the Central Bank's Monetary Policy Committee (Copom) decided, unanimously, to continue the rate hike that began last March after almost six years of cuts that brought the indicator to the all-time low of 2.00 %.
In this way, the interest rate returns to its highest level since February 5, 2020, twenty-one days before the first case of Covid-19 in the country was confirmed.
FULLY COVERS THE GAP LEFT ON MONDAY
The Ibex ended up covering the bullish gap left on Monday on Wednesday. According to the experts of Bolsamanía at the first hour, at these prices "the most normal thing is that we can see the return of purchases", which could translate into an extension of profits up to 9,500 points.
"We will not appreciate even the slightest sign of weakness as long as it remains trading above 9,000 points," says César Nuez, analyst at Bolsamanía and head of Trader Watch.
OTHER MARKETS
The euro falls in value 0.6% and trades at 1.1916 dollars. Oil fell more than 1%, to 73.27 dollars for Brent and 71.13 dollars for West Texas.
The ounce of gold and silver fell sharply by 4% and 6%, respectively, to 1,774 dollars the first and 25.97 dollars the second.
Bitcoin is up 0.1% to $ 38,857, and Ethereum is down 1% ($ 2,397).
The yield on the 10-year American bond eases to 1.52% and the yield on the 10-year Spanish bond rises by 7% to 0.43%.
