Saturday, September 30, 2023

The Ibex 35 lost 9,400 before US inflation

The Spanish selective showed a remarkable fall in the session this Wednesday, with Aena, Inditex and Grifols weighing on the Ibex, while investors await CPI data in the United States.

The IBEX 35 showed a fall of 1.14% in the middle session this Wednesday, at 9,348 points. Aena was the most penalized value this time, with a fall of 3.74%, followed by Inditex, which lost 3.46% and Grifols, which fell 3.39%. Among some bullish values, Solaria stands out, advancing by 1.83%.

All eyes inside Ibex are focused on Inditex. The largest company on the Spanish stock market published its results early this morning. The textile giant is accelerating its growth again. It paid 16,851 million between February and July, 13.5% more, even compared to a record period, and its net result increased by 40% in the first half of the financial year. An amount that “stays on trend” aka a new price of 37,50 euros thanks to the fact that it remains strong development plans for a long time, with global sales that give room to raise prices, said Diego. Morín, IG analyst.

Investors focus on US inflation

The new rise in oil prices has revived inflationary pressure that could raise the ceiling on US interest rates one more step. The market does not see a new rally ahead of next week’s Federal Reserve meeting. But today’s numbers could back up the chances of another further rate hike before the end of the year, with the result being further pressure on growth. At this time, Brent oil futures rose 0.58%, to $92.59, while West Texas Intermediate rose 0.68%, to $89.44.

In the run up to the ECB meeting, now all eyes are on the inflation data in the United States for the month of August, which will be released at 2:30 pm The consensus expects the general rate to rise to 3.6%, from of the previous 3.2% and that the underlying rate will rise to 4.3%, down from the previous 4.7%. “If the core inflation did not slow down in August or, worse, increased in the month, we could see a small correction in both markets. because investors are discounting that the Federal Reserve (Fed), when it meets next week with its Federal Open Market Committee (FOMC), will not raise its official interest rate again and that it will not will do in his meeting at the end. October and early November”, acknowledged the experts of Link Securities.

Among the macroeconomic references in Europe, the GDP and industrial production of the United Kingdom stand out, as well as the industrial production of the Euro Zone.

The UK’s gross domestic product (GDP) fell by 0.5% in July, weighed down mainly by the services sector, although there were declines in all areas., compared to a growth of 0.5% in June, the National Statistics Office (ONS) reported this Wednesday. The ONS determined that, despite this reduction, in the three months between May and July the national GDP increased by 0.2%, with the development of the main sectors, offering better signs of recovery. For his part, the UK industrial production July fell 0.7% in monthly terms.

the Eurozone industrial production fell 1.1% in monthly terms in July. In year-on-year terms, industrial production in the 19 eurozone countries fell by 2.2% in July, after the June figure was revised upwards, from -1.2% to -1.1%.

As for the United States, we will know the mortgage market index.

After a lower close on Wall Street, Dow Jones futures fell 0.11% to 34,608 points, the S&P 500 it lost 0.09% to 4,456 points while the NASDAQ 100 lost 0.19% to 15,262 points.

The Euro Dollar fell 0.20%, to $1.0730 while among cryptocurrencies Bitcoin rose 1.13%, to $26,153.9 and Ethereum rose 0.59%, to $1,598.02.

Nation World News Desk
Nation World News Desk
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