2023-10-11 17:55:57
The euphoria that yesterday shot up more than 2% to the Ibex-35 turns into moderation this Wednesday, with the selective closing with a timid rise of 0.09% to 9,360 points, pressured above all by the fall of Inditex, one of the securities with the greatest weight in the national stock market.
Specifically, the textile giant fell 2.5% to 34.64 euros at mid-session, pressured by the worse than estimated sales of another of the sector’s biggest players, the French luxury firm LVMH. The company’s income in the third quarter was 19,964 million euros, 9% more than in the same period of 2022. The figure is positive; but it falls far short of the 17% growth recorded between April and June in interannual terms.
The slowdown in sales growth has hit the company with a drop that in the most tense moments has reached 6%, acting as a burden for the entire sector in Europe given the evidence of lower consumption compared to the boom experienced after the pandemic.
Within the national park, Rovi, Cellnex and Repsol are also located at the bottom of the table. And other values that could be showing investors’ flight from risk in the face of the Gaza conflict, such as IAG, Meliá or Amadeus.
Investors have also closely followed other variables that these days serve as a thermometer to evaluate the development of the war in real time, such as the price of oil. At the moment, a barrel of Brent remains at 87 dollars, slightly below the 88 it exceeded after the outbreak of the war. For its part, the American West Texas remains at around $85.
Calm also remains in debt interest rates, one of the factors that has put the most pressure on the stock market in recent weeks. Recent statements by some members of the Federal Reserve (Fed) betting that there should be no new rate hikes has deflated bond interest rates. For example, the Spanish ten-year-old fell 2.3% this Wednesday to 3.80%, far from the 4% it exceeded last week.
«The probability of any further rate hikes has reduced. That’s why the yields on sovereign bonds are too. The key will be American inflation this Thursday, with which we must be careful because it may become clear that it is already difficult to go back,” say the Bankinter analysts.
This reinforces the voices that suggest that the 2% objective has become outdated and there will come a time when central banks must rethink them.
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