The ibex struggles to keep the 8,700
Yellen could raise interest rates next month
European shares open with mixed sign on Friday after Fed's President, Janet Yellen, opened the door to a possible rise in interest rates in December. The Ibex remains stuck in the area of 8,700 points and is trading in negative sign.
IBEX 35
11.609,200
-
-0,88%-102,60
- Max: 11.636,10
- Min: 11.575,00
- Volume: -
- MM 200 : 11.134,59
Despite a week of indecision carried out by the Spanish selective, in which it has been oscillating between red and green, Ibex remains around 8,700 points. The banks does not end up taking a clear course and Popular is still the entity with more doubts. In the last session, the bank lost an extra 4.47% and this Friday is the worst value of the Spanish selective, with a drop of 2%.
THE RISE OF TYPES NEAREST
In US, an increase in rates by the Fed is becoming more and more present, a move that could push the European Central Bank (ECB) to follow the same path and ease banks balance sheets. The profits of the banking sector are suffering during this last year because of the negative deposit rates, which are directly impacting the entitie's interest margin.
Interest rates in the United States will rise "relatively soon," said Federal Reserve chairwoman Yellen in a speech to the Economic Committee of the United States Congress. In addition, she confirmed that she will fulfill its current mandate, which expires in 2018. Many analysts take it for granted that it will not opt for a second term.
From the macro viewpoint, Germany has presented the production price index for October, which was better than expected, standing at 0.7%. After the European opening, Mario Draghi, president of the ECB, will give new clues about the next steps in monetary policy. In addition, throughout the day also speak several members of the Federal Reserve in the US, which will add a greater perspective to the strength of Yellen's words.