This is the worst series of declines in the selective market since March 2020
Investors remain hesitant to increase their exposure to risky assets ahead of the central bankers’ meeting to be held in Jackson Hole since Thursday, although it won’t be until Friday when the most anticipated speech arrives, that of the Federal Reserve President. (Fed), Jerome Powell.
Awaiting the meeting, the Ibex-35 said goodbye to the day with another drop of 0.33%. It is the sixth consecutive day of losses for the selective, the worst streak since March 2020 amid the outbreak of the pandemic. And his chart has already lost 8,200 points.
Major stocks led the losses, with declines of more than 3% for Repsol and nearly 2% for Telefónica, ArcelorMittal and Acerinox. Declines outweighed the green numbers recording energy readings for another day, with Solaria rising 3.5% at the close, followed by Acciona Energy (+1.8%). Endesa, Iberdrola and REE also finished the session higher.
For now, all eyes are on the summer’s economic event. Cristina Gavin, head of Fixed Income at Ibercaja Management, believes that “Powell is unlikely to clarify whether the next rate hike will be 50 or 75 basis points, so it will be necessary to wait early for advances data on prices and employment. ” September to get a clearer picture of the movement’.
However, Link Securities analysts expect Powell to use his speech to convey the Fed’s view on the future of these key factors in monetary policy decisions (inflation, the labor market and the economy as a whole), “which should allow investors to draw conclusions” about future rate hikes.
Meanwhile, the oil price in the commodities market began to surge and again above $100 after Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman assured OPEC+ could propose cuts in its oil production “if the price of these commodity continues to fail to reflect the fundamentals of supply and demand in the real market due to the intervention of speculators in the futures markets.”
However, as the European markets closed, the declines returned and a barrel of Brent type, a reference in Europe, stood at $99, while the US West Texas is around $95.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
