Friday, September 29, 2023

The Ibex 35 falls 0.33% after Inditex results and US inflation, awaiting the ECB tomorrow

The Ibex 35 fell this Wednesday by 0.33%, reaching 9,424.1 points, in a session marked by the results of Inditex and inflation data from the United States in August, awaiting tomorrow’s meeting on monetary policy of the European Central Bank (ECB).

The Spanish stock started in the red and lost more than 1% at midday, putting at risk the level of 9,300 Inditex shares, affected by the declines in Inditex, the most important stock on the selective exchange. However, it changed direction and narrowed the setbacks sharply by the end of the session following the release of US CPI data for August, which the Federal Reserve (Fed) will focus on at its meeting scheduled for next week.

The annual inflation rate in the United States accelerated its increase to 3.7% in August from 3.2% in the previous month, marking a new upswing for the second month in a row, although the underlying inflation rate excludes the impact of volatility in the food and Energy prices reached 4.3%, four tenths less than in July.

Experts at Federated Hermes have pointed out that inflation data is likely to justify another Fed pause in September, although it does not clarify its actions “much more,” so they expect contradictory statements from the central bank in the fall, a consensus that will be difficult to achieve and which could lead to a controversial meeting in November.

Wall Street indices, for their part, reacted this afternoon with slight increases following the release of this data.

On that day it was also revealed that the UK economy fell by 0.5% in July compared to the previous month, weighed down by the three main sectors of the economy, particularly the services sector, a figure that contrasts with the growth of 0.5% stands, which recorded the second largest economy in Europe last June.

While waiting to hear the ECB’s monetary policy decision tomorrow, a report from Banca March indicated this Tuesday that the chances of the institution raising interest rates by a quarter point reach 70%, well above the 40%, that she had bet on. for this a week before. If this increase occurs, interest rates in the Eurozone would rise to 4.5%.

Within the Ibex 35, Inditex fell 0.47% – down 4% on the session – after reporting record half-year results that beat analysts’ forecasts.

Specifically, the company founded by Amancio Ortega recorded a net profit of 2,513 million euros in the first half of its 2023-2024 financial year (between February 1 and July 31), an increase of 40.1% compared to the same period Year before, while sales increased by 13.5% and reached 16,851 million euros.

On the Capricorn side of falls are Aena (-3.21%), IAG (-2.47%), ArcelorMittal (-2.08%), Grifols (-1.52%), Fluidra (-1.48 %) and Bankinter (-1.48%). %) and Caixabank (-1.45%).

In contrast, Solaria Energía (+5.23%), Mélia Hotels (+1.22%), Indra (+1.02%) and Colonial (+0.82%) led the progress.

The other European cities recorded losses similar to Madrid: London lost 0.02%; Milan 0.36%; Frankfurt 0.39% and Paris 0.42%.

At the close of trading on the Old Continent, the barrel of Brent was again trading at $92.12, up 0.07%, while West Texas Intermediate recorded an increase of 0.05% to $88.9.

In the debt market, the yield on Spain’s 10-year bond rose to 3.717% after gaining two basis points. This meant that the risk premium (difference to the German bond) was 107 basis points.

In the foreign exchange market, in anticipation of the ECB’s decision, the euro depreciated against the dollar by 0.16%, reaching an exchange rate of 1.0737 dollars per euro.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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