2023-08-17 18:07:47
The start of the session in Europe, began with timid falls after knowing the minutes of the FED late yesterday. According to the reported conclusions, the members of the body chaired by Jerome Powell, are optimistic regarding the current state of the American economy as well as concerned about how high inflation continues to be. This last comment caused the markets to raise their bets in the face of a new rate hike before the end of the year, which in turn generated significant increases in bond yields, each time reaching higher levels.
The Ibex 35 closes a new session with widespread falls, on a day marked at the national level, by the votes for the presidency of Congress and the Senate. Despite the support of some banking entities that manage to close higher, such as Bankinter, Caixabank or Sabadell, and pharmaceutical companies with Rovi and Grifols among the best values of the day, the main sectors of the economy have ended in red numbers . This is mainly the case of energy companies that are suffering from the rise in debt profitability, and after once again seeing how the price of gas stabilizes. The tourism sector, which continues to be affected by the rise in oil, is also correcting with strong falls.
At the corporate level, two presentations of results also stand out. On the one hand, the leading company in the US retail sector, Walmart, has presented its results today, positively surprising the market not only with the data from the past quarter but also with the expectation of the coming months. While Ayden, a Dutch technology company, in digital payments fell more than 30% after failing to meet consensus expectations in its results.
In other markets, it highlights the movements of the Central Bank of China to set an exchange rate with the dollar, while in the rest of the crosses there are hardly any movements to highlight. While in raw materials, the day is running very stable after the latest movements.
Tomorrow the CPI data for the euro area will be key, which could give us new clues about the future decision to increase rates by the ECB.
*Manuel Pinto is an analyst at XTB
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