The Spanish Treasury places the debt at 3 and 9 months at the highest interest rate since 2013
World equity markets await with moderate optimism the key reference of the week: US inflation data, which may provide new clues as to the degree of toughness the Federal Reserve (Fed) will use in its speech at its next monetary policy meeting.
As recalled by Link Securities’ analysis department, the overall index is expected to relax somewhat, from 8.5% in July to 8.1%, while the underlying index is expected to recover from 5.9% in the previous year. month to 6.1%.
“Any read that is better than expected will be very well received by the markets, which could consolidate their recent progress in this way and in the near term. On the other hand, inflation that is hesitant to abate may give rise to some profit-taking in the European and US equity markets, especially by most short-term investors.
Regardless of the market reaction, the truth is that for weeks it has been discounted that the Fed will raise interest rates by another 75 basis points at its next meeting, reflecting the message that inflation is the biggest enemy to beat, even if it generates some suffering for families and businesses, as Jerome Powell acknowledged at the latest central bankers’ meeting in Jackson Hole.
For now, the Ibex-35 remains slightly higher than 8,200, although there are certain signs of early profit-taking in stocks that have outperformed in recent sessions, such as banks.
Solaria leads the increases, with an advance of 4%, followed by Grifols (+1.84%), Acciona (+1.39%), Bankinter (+1.36%), Mapfre (+1.35%), CaixaBank (+1.21%) and Acciona Energy (+1.01%).
On the contrary, in the negative area Rovi (-1.69%), Colonial (-1.58%), Repsol (-1.56%), Acerinox (-1.48%), Merlin (-1.07%) , Sabadell (-0.65%) and Sacyr (-0.59%).
In Spain, investors learned that the Consumer Price Index (CPI) rose three-tenths in August compared to the previous month, but cut the year-on-year rate by three-tenths to 10.5%, and remains at a level that long time has never been seen over 30 years.
Investors are also closely following the behavior of the fixed income markets, after the Treasury placed 1,938.35 million euros in an auction of 3- and 9-month notes, the first on these terms since the ECB decided to raise interest rates by 75 percent. basis points.
The effect of the rate hike was noticeable, not so much in demand – with a remarkable appetite on the part of investors well outpacing supply – but in the interest paid to place the debt.
Specifically, 376 million euros was placed in three-month accounts, compared to a demand of 2,355 million, with a marginal interest rate of 0.735%, well above the 0.145% of the previous auction for the same term. It is also the highest level since June 2013.
In the 9-month letters, the Treasury has placed 1,562.35 million, compared to 2,212.35 million requested by investors. The marginal rate was 1.35%, double the previous 0.618%.
Meanwhile, on the commodities market, the price of a barrel of Brent, a benchmark in Europe, rose by 1% to nearly $95, while the price of West Texas in the US is $88.7.
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.
