The Ibex accelerates above 9,200 points boosted by Santander and the euro falls after the ECB | markets

The Ibex accelerates above 9,200 points boosted by Santander and the euro falls after the ECB |  markets

Las european stocks they accelerated the gains they were already registering before the announcement by the European Central Bank (ECB) of a new rise in interest rates by 50 basis points, up to 3%. The movement was already discounted by the markets, as was the increase of 25 basis points executed yesterday by the Federal Reserve (Fed) of the United States. Thus, the Ibex 35 It added 1.45% at the end of the day (it has risen 1.9%) and is consolidated at 9,200 points. The Spanish selective is placed at the highest in June 2021. For its part, the euro it has gone from trading flat to falling around 0.3%. European debt yields also fall sharply.

The accounts of Banco Santander are the main engine of the Spanish selective with an increase of more than 5.73%. Like BBVA, it obtained a historic profit in 2022. The entity earned 9,605 million euros and shot its margins to double digits. Grifols is the value that rises the most, 9.27%. Fluidra earns 8.18% and Amadeus, 5%. Among the falls, Sabadell stands out, which fell 4%. So far this year, the Ibex has appreciated more than 12%.

In the great week of central banks, today it was the turn of the Bank of England and the ECB. The BoE has implemented a 0.5 percentage point rise in interest rates, which went from 3.5% to 4%, its highest level in 14 years. The ECB has also raised rates by 50 basis points and has promised another half point hike in March. The markets are waiting for the words of its president, Christine Lagarde, at the press conference.

In the debt market, European debt yields fall. The interest on the German ten-year bond, considered the safest in Europe, falls to 2.086% compared to the previous 2.282%. The yield of the Spanish bond at the same term is also reduced to 3.077%, compared to the previous 3.277%.

Yesterday the Fed raised interest rates, this time by a quarter point, to combat inflation. The president of the US central bank, Jerome Powell, anticipated that there will be more rises in the price of money, but stressed that inflation seems to be under control and “he sees possibilities of reaching the 2% inflation target without a significant economic decline.” Investors liked his statements.

“The Fed backed away from the big 75 and 50 basis point hikes at a time when inflation is showing signs of cooling. Powell again pushed back against market expectations of potential rate cuts this year, but at the same time signaled a possible end of the cycle of increases”, Christian Scherrmann, economist for DWS, points out in a report.

With Powell reinforcing the message that the Fed was not yet tight enough and more work remained to be done, the general tone of Powell’s comment soon began to shift from decidedly dovish to cautiously optimistic. Market participants took notice. quickly captured and led to a further easing of US financial conditions. The dollar was sold off, equities rose and more rate cuts were expected in the second half of 2023, weighing on the US Treasury curve as a whole,” comment about it Simon Harvey, Head of FX Analysis at Monex Europe.

As every Thursday, the weekly number of requests for unemployment benefits in the US has been known, which dropped to 183,000, 3,000 less than the previous week.

As for the results, the highlight this afternoon are the accounts of three of the big technology companies: Apple, Amazon and Alphabet.

On the other hand, the Public Treasury has placed 6,499.35 million euros in the first auction in February, in this case of State bonds and obligations, raising remunerations. The yield exceeds 3.5% in 20-year State bonds. In the secondary market, the 10-year Spanish bond lowers its yield to 3.25%.


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