The Ibex 35 has risen 0.36% to 9,150.50 points, after marking an intraday high at 9,173 integers. The European stock exchanges have reduced their profits after knowing that the European Commission has activated the disciplinary procedure against Italy. However, the Spanish stock market has distanced itself from the uncertainty surrounding the Government of Rome and has managed to close positively, after the EC asked to close the file opened for Spain in 2009 for excessive deficit.
- 11.533,700
- -0,31%
The EC considers that the Government of Rome has not adopted sufficient measures to reduce its public debt, which exceeds 130% of GDP and will continue to grow in the coming years. The filing includes a fine of some 3.5bn euros.
In business today, Ence (-4%) has led the falls in the Ibex. Bolsamanía has published that Norges Bank will keep the 2% of the capital on loan to bearish investors and that the AHL Partners fund has increased its short position to 1.32%.
In addition, Berenberg has published a report on the Spanish medium-sized bank in which it has improved its advice on Sabadell (-1.4%), has reiterated its recommendation to buy on Unicaja and its advice to sell on CaixaBank (-3.3% ) and Bankia (+ 0.2%).
On a positive note, Cellnex has picked up 2%, followed by securities associated with the electricity sector such as Red Eléctrica (+ 1.8%), Iberdrola (+ 1.6%) and Endesa (+ 1.4%).
And in the continuous market, Prosegur has risen 4% after approving a capital reduction of 10% through a share repurchase program for 300m euros, within its policy of shareholder retribution.
In other markets, Brent oil falls 2.7% to $ 60.30. For its part, the euro falls in value 0.1%, to $ 1,1249. In addition, the Spanish risk premium has dropped to 86 points and the yield on the Spanish 10-year bond is relaxed to 0.64%, the new historical low.
EUROPEAN CENTRAL BANK'S TURN
On central banks, we have to wait for the European Central Bank (ECB) to give its address this Thursday. Investors expect it to open the door to more stimulus at a time when everything points to an increasingly accommodative performance of central banks. There are the expectations about a drop in rates by the Fed.
In an event organized by the Federal Reserve of Chicago, the president of the Fed, Jerome Powell, said on Tuesday that the US central bank is willing to relax monetary policy and support the US economy in the event of a recession that may be motivated by the prolongation of the commercial conflict between the US and China.
"Powell gave the markets what they wanted to hear and the result was a spectacular rise, as traders increase their bets for a rate cut before the end of the year," said Jasper Lawler, head of analysis at London Capital Group.
Powell's comment followed others made by Fed members earlier in the week. Analysts say that this way of acting of the Fed is usually a signal to prepare investors about a change in their policy. "Risk assets rose as investors responded to the prospect of an environment of lower interest rates," Lawler added.
In this sense, Bolsamanía experts argue that what happens tomorrow with the ECB "will be key to see how the market closes this week and to confirm whether the falls come back or take a shot at the rebound." Even so, some analysts indicate that the impact of central bank measures could be "short-lived" since the commercial scale continues on multiple fronts.
As for other aspects of the day, today ends the official three-day visit of Donald Trump to the United Kingdom. Trump, who has been in favor of a hard Brexit, has indicated that, when everything finishes between the United Kingdom and the EU, the United States will be prepared for a "phenomenal deal" with the British.
Regarding other issues of the session, PMI services have been published in Europe, which have shown that the growth of the private sector in the Euro Zone continues, albeit at a more moderate pace. In the US, the ISM services have also exceeded forecasts in May, although the employment data of the ADP consultancy anticipates a weak job creation for the official figure that will be published this Friday.
