Bearish close for the Ibex despite Powell's reassuring tone with inflation

The Ibex has fallen 0.42%, to 8,658 points, after marking an intraday low at 8,625 integers, very close to the short-term support it has at 8,600 points. The selective has failed to rebound after falling more than 1% this Tuesday, although Jerome Powell's reassuring tone with inflation has once again calmed investors.

Within the selective, the falls in Cellnex -amid the competition problems related to the Hutchison operation-, Solaria or Siemens Gamesa have attracted attention. On the positive side, Bankinter, ArcelorMittal and Acerinox have risen more strikingly.

The most important event on Wednesday's agenda was the appearance of Jerome Powell, president of the Federal Reserve (Fed), before the Financial Services Commission of the House of Representatives.

The central banker has indicated that inflation "will probably remain high in the coming months before moderating", although he has once again shown his calm on this matter.

"As inflation has persistently remained below 2%, our aim is to achieve inflation moderately above 2% for some time to average 2% over time and longer-term inflation expectations are keep well anchored at 2% ", he explained.

In addition, the central banker has wanted to chase fears of a premature withdrawal of stimuli by the monetary body, by ensuring that the economy still has "a long way to go" to consolidate its progress.

Thus, he has promised that the Fed will give sufficient advance notice of any changes in its purchasing programs. "As we have said, we will give advance notice before announcing any decision to make changes to our purchases," he said.

This Wednesday the UK inflation for June was known (it has risen to 2.5%, higher than expected), as well as that of Spain (it has stood at 2.7%, its highest rate in four years). Also on today's calendar is the Fed's Beige Book in the United States.

In addition, Bank of America, Citigroup or Wells Fargo also published results after the figures of JP Morgan and Goldman Sachs surpassed the estimates yesterday.

BBVA INCREASES ITS FORECASTS FOR SPAIN

In a different vein, BBVA Research has revised upwards the growth forecast for the Spanish economy for 2021 by one percentage point, to place the Gross Domestic Product (GDP) at 6.5%. The forecast for 2022 remains at 7%. Its experts consider that the recovery of foreign tourism and the arrival of European funds will be key for Spain.

In the second quarter of the year, BBVA Research estimates that Spanish GDP growth could be between 2.3% and 3.3% quarter-on-quarter, above the previous forecast of 1.3%. According to the report, the main factor behind the recovery is the improvement in health indicators, both in Spain and in the developed world and China.

In addition, the Minister of Economy, Nadia Calviño, has announced that the rate of activation of workers in temporary employment regulation files (ERTE) has accelerated in July compared to the previous month, falling below 400,000.

TECHNICAL ANALYSIS AND OTHER MARKETS

By technical analysis, "to see a sign of strength in the Ibex we should wait for a close above 8,968 points. Below, the first level of support is at 8,597 points", says César Nuez, analyst at Bolsamanía y responsible for Trader Watch.

The euro rises in value 0.4% and trades at 1.1821 dollars. Oil fell 0.5 to $ 76.13 for Brent and $ 74.72 for West Texas, after OPEC finally reached an agreement on crude production.

Gold is up almost 1% ($ 1,823), as is silver ($ 26.38).

Bitcoin is up 1% to $ 32,819, and Ethereum is up 4% to $ 2,003.

The yield on the 10-year American bond relaxes to 1,366% and the yield on the 10-year Spanish bond falls to 0.307%.