The Ibex-35 opens doubtfully with the market’s attention at the Fed

FILE PHOTO: Electronic boards with listing data inside the Madrid Stock Exchange, Spain, on June 24, 2016. REUTERS / Andrea Comas

Jan 10 (Reuters) – The main Spanish stock index opened on Monday with a slight rebound, as the market analyzes the evolution of the pandemic and awaits new references that provide clues about the next steps of the United States central bank.

Part of the market anticipates two interest rate hikes by the Federal Reserve this year, although the decision on this matter and on reducing its balance sheet will largely depend on upcoming macroeconomic indicators and, to a lesser extent, on the impact of the omicron variant of coronavirus in activity.

In this sense, the words of Jerome Powell, president of the Fed, before a parliamentary committee on Tuesday, and the inflation report from the United States on Wednesday, will be followed with special interest, while the market continues to monitor the brutal advance of omicron, which so far it has not led to a proportional increase in hospitalizations.

“Even so, it will be necessary to monitor the impact of the new waves and their associated restrictions on the activity of the service sector, restrictions that can also cause a greater persistence of bottlenecks in supply chains, especially in those countries with zero tolerance to Covid like China, “said analysts at the Spanish brokerage Renta 4.

At 08:05 GMT on Monday, the selective Spanish stock exchange Ibex-35 rose 6.50 points, or 0.07%, to 8,758.30 points, while the index of large European stocks FTSE Eurofirst 300 advanced 0.28 %.

If it closes lower, it would be the fourth consecutive session in negative for the Ibex, although all the setbacks of the previous days have been limited.

The perception that the negative repercussions of omicron will be lower than feared helped the tourism and travel sector: the airport manager AENA earned 0.73%, the Anglo-Spanish airline holding company IAG earned 1.79%, the group of Amadeus flight bookings dropped 0.19% and the hotel company Meliá dropped 0.84%.

In the banking sector, Santander rose 0.58%, BBVA scored 0.32%, Caixabank advanced 0.19%, Sabadell gained 0.94%, and Bankinter rose 0.52%.

Among the large non-financial securities, Telefónica fell 0.09%, Inditex advanced 0.47%, Iberdrola appreciated 0.25%, Cellnex gained 0.14% and the oil company Repsol lost 0.09%.

(Information from Tomás Cobos, edited by José Muñoz)



Reference-www.infobae.com

Leave a Reply

Your email address will not be published.