The Ibex stands out from inflationary pressures thanks to Inditex

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The selective maintains 8,100 points in light of the severe collapse suffered on Wall Street on Tuesday after learning about the US CPI

Inditex supports the gains in the Spanish stock market. The textile giant’s results have convinced the market with record sales and profits, despite the feared impact of inflation on consumption.

The company is up more than 4% in the mid-session, which also helps the Ibex-35 rise 0.5% above 8,100 points on a day that would in principle be very difficult for investors. Especially after the collapse of key Wall Street indicators from the previous day, with declines of more than 5% for the Nasdaq 100 and about 4% for the S&P 500 and the Dow Jones.

Some declines caused by an inflation rate that was worse than expected. Specifically, inflation in the US was 8.3% in August, compared to the expected 8.1%. In other words, the rate of the indicator’s decline is much more moderate than expected. It is therefore foreseeable that the Fed will maintain the pace of monetary policy tightening in its next meetings.

In addition, at the September meeting, futures already give a 68% chance of an increase of 75 basis points. Even the odds that the Fed would go for an increase of one percentage point was 32%.

The data didn’t just cause stock exits. Bonds also suffered from investor doubts and the sale continued on Wednesday, pushing prices down and 10-year bond yields soaring to 3.44%, the highest since mid-June.

The prospect of a higher interest rate hike is also pushing bank prices up, despite the doubts this move could create about its impact on economic growth. CaixaBank is up more than 2%, while Bankinter and Sabadell are up more than 1%.

On the commodities market, the price of a barrel of Brent, a benchmark in Europe, stood at $92 with a 1% decline, while West Texas in the US was around $86.

Source: La Verdad

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