2023-05-02 10:47:34
Doubts in the global financial markets before the start of the two-day meeting of the US Federal Reserve (Fed), which is expected to undertake a new rise in interest rates this Wednesday, perhaps the last of this upward cycle. While waiting for the decision, investors are also trying to digest the fall of another bank in the world’s leading power, First Republic Bank, which on Monday was rescued by another giant in the sector, JP Morgan Chase.
Caution is imposed after an operation that was rather an open secret for days, accelerated after the massive flight of deposits suffered by this entity in recent weeks. After Monday’s bank holiday and a flat start to the session, the Ibex-35 accelerated its falls to 0.8%, putting 9,200 points at serious risk.
Repsol and Telefónica act as the main ballasts of the selective with losses that already exceed 2%, followed by Indra, Cellnex and Solaria. Only Unicaja Banco, IAG, Mapfre, Rovi and CaixaBank are clearly holding up.
Investors pay special attention to the evolution of the banking sector titles, the main protagonists after the fall of the First Republic and the meeting of interest rates of the Fed. For the moment, Santander, Bankinter and BBVA are trading in negative, with the biggest falls for the entity chaired by Carlos Torres, which yields more than 1%.
“The intervention and sale of the First Republic (FRC-US) was the Time.news of a death foretold, and for this reason the reaction of the US stock market was to ignore the fact,” explain the Link Securities analysts.
In his opinion, the fall of the bank should be the last within the regional entities. Although they recognize that “fear is free and, in a world remotely controlled by social networks, at any time another entity can get into trouble.”
After the rescue of the entity, the CEO of JPMorgan Chase, Jamie Dimon, indicated his confidence that the phase of the crisis that has hit the US banking system since last March can be considered practically resolved. “This part of the crisis is over,” said the American banker, the only survivor of the great financial crisis among the top executives of the country’s large banks, during a conference with analysts.
“Although this issue, that of the crisis of confidence in the banking sector, we believe will reappear periodically in the coming months, in the short term the interest of investors will continue to focus on the actions of central banks, on the macroeconomics and, therefore, in business results”, they insist from Link Securities.
Against this backdrop, the Fed has already started its two-day meeting that ends this Wednesday, predictably with a new rise in interest rates to place the reference rate in the range of 5%-5.25%. The monetary body is also expected to announce a stop along the way in its rate hike process, at least until it checks the impact that this process has had both on inflation, which continues to slow down, albeit slowly, and on economic growth.
“In addition, we believe that the tensions in the US banking sector will lead the members of the FOMC to be prudent with their policies and, we hope that from now on, also with their statements and with their comments,” the experts say.
Meanwhile, in the raw materials market, the futures of a barrel of Brent crude oil -a reference in Europe- fell 0.3% to 79 dollars, while the US West Texas is around 75 dollars.
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