Sunday, June 4, 2023

Ibex-35 retreats after macro data and lack of progress on US debt

May 23 – After chasing four upward sessions, the main selective Spanish Ibex 35 fell on Tuesday due to signs of a slowdown in the euro zone economy and the stalling of debt ceiling talks in the United States.

An early study of the Purchasing Managers’ Index (PMI) in the euro zone, considered a good thermometer for the general economy, highlighted the regional gulf between manufacturing and services in good health during the recession.

“The boom in services is a breather for growth, but a headache for inflation as pricing pressures escalate,” said Ben Ladler, global markets strategist at eToro, in a note.

And as a result of such conflicting data, central banks are becoming increasingly cautious in easing their monetary policy, keeping investors on edge and reducing their appetite for risk, already given the lack of agreement on expansion. Due to have been put on trial in Washington. of loan limit.

“Markets are now in a reasonable holding pattern after the first quarter results and the scare left over for US banks. And with the debt ceiling tussle, a possible change in interest rates by the Federal Reserve and unexpected double digit earnings this year Ladler added.

The select Spanish stock market Ibex-35 closed down 38.00 points on Tuesday, down 0.41% at 9,267.00, while the broader European bourses index FTSE Eurofirst 300 lost 0.60%.

In the banking sector, Santander declined by 0.14%, BBVA by 0.18%, Caixabank by 0.89%, Sabadell by 0.41%, Bankinter by 1.51% and Unicaja Banco by 0.21%

In major non-financials, Telefonica declined 1.11%, Inditex 1.83%, Iberdrola 0.22%, Selnex 0.60% and oil company Repsol 0.19%.

Among other electric companies, Naturgy fell 1.19%, while Endesa advanced 0.25%.

Nation World News Desk
Nation World News Desk
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