Electricity companies are promoting the selective, while Meliá Hotels is undergoing a strong correction due to a reduction in the recommendation
The Ibex-35 ended Wednesday’s session with a slight gain of 0.17%, to make a final change at 7,855.90 points. So cautious buying by investors on the eve of a meeting of the European Central Bank in which a sharp rise in interest rates is taken for granted. It is not known whether the increase will be 50 or 75 basis points. This week, Jan Feliz Gloeckner, investment specialist at BNY Mellon IM, explained that pressure is mounting for Eurobank to increase the price of money by 75 basis points. “With skyrocketing inflation, coupled with the risk of undesired consequences from continued inflation, the need for adjustment is clear,” Gloeckner said.
Last July, the institution chaired by Christine Lagarde already raised official euro rates by 50 basis points, ending six years of free money. It was the largest increase in 22 years.
The selective domestic leaned on the companies’ “utilities” to rise. Solaria was thus the most profitable value of the day, with a revaluation of 6.09%. Then Acciona was placed, with a progress of 4.37%. Then came Endesa, up 3.11%. And Acciona and Iberdrola scored more than two percentage points.
Later, a number of stocks gained more than 1%: Cellnex and ACS.
In a negative sense, Meliá Hotels was the ‘red lantern’, with its sizable discount of 9.13%. And it is that the company has received a cut of the recommendation from Deutsche Bank. The German bank believes that the hotel sector as a whole may face inflation and a more difficult economic scenario next year.
The pharmaceutical company Rovi left about 6% and Repsol, just over 4%. The oil company suffers this cut in the session in which it announced that the fund specializing in infrastructure and energy EIG will acquire 25% of its ‘upstream’ activities for 4,850 million euros. The oil company blamed the crude oil price drop to its lowest level since January, as well as the European Commission’s willingness to introduce a tax on the oil sector.
In the rest of the Old Continent, varied behaviour. For example, Milan’s Ftse Mib practically ended in a draw, as did France’s Cac 40. Germany’s Dax fell 0.35% and the Lisbon PSI-20 lost about 0.5%.
Investors are looking at the energy market and the shutdown of Russia’s gas supply, with its potential impact on prices and economic growth. To deal with the situation, the European Commission has proposed limiting revenues from renewable energy and nuclear energy, levying a solidarity tax on oil companies and reducing electricity consumption.
Prices on the commodities market fell on Wednesday: both gas (-3.5%) and a barrel of Brent oil (-3.65%) and West Texas (4.10%).
In the foreign exchange market, the euro remains very close to its two-decade low and below par with the dollar. A weak euro is inflationary for the economies of the Old Continent. And this is an additional element of pressure for the European Central Bank to make an aggressive decision at its regular monetary policy meeting on Thursday.
All the uncertainties have meant that since last August 17, in addition to this Wednesday’s session, the Ibex-35 has only managed to finish in green on another day, September 2nd.
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.
