2023-07-04 18:52:44
The Spanish stock market stopped a streak of six consecutive positive sessions and fell back from annual highs on a day marked by the festivity on Wall Street for Independence Day. The trading average was a third lower than the average of the last 30 days. The new objective of the Spanish selective after the achievement of the new annual maximums is 10,000 points and in the next sessions it will be possible to verify if the area of 9,500 points becomes a new support area.
On the corporate front, property-related stocks such as Merlin Properties led gains after an investment recommendation. It was followed by companies that have been severely penalized in recent months due to their high indebtedness in a context of monetary tightening, such as Grifols, Fluidra and Cellnex Telecom. On the negative side, several companies dragged down by the dividend payment stand out, such as Enagas, Acciona, ACS, Repsol and Colonial.
The Central Bank of Australia surprised by stopping the rate increase, when the market had priced in a rise of 25 basis points. The People’s Bank of China cut the daily rate and announced restrictions on exports of semiconductor-related raw materials. Investors continue to weigh recent hikes and are increasingly concerned about the high rate environment and economic slowdown as it could lead companies to cut profits.
In other markets, a barrel of brent recovers to 76 dollars after Saudi Arabia confirms that it will extend the reduction of 1 million barrels per day until August in a new attempt to defend prices given the prospects of lower demand. The ounce of gold rose for the fourth consecutive session to $1,935, far from the highs reached last May. While the EURUSD remains at 1.09 awaiting the central bank meetings that take place in the middle of the month.
Joaquin Robles, XTB analyst
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