The Ibex-35 tries to make up for the close of a fateful quarter in which the selective losses accumulate close to 10%
Maximum caution on European stock markets in anticipation of eurozone inflation figures to be released this morning. The Ibex-35 threatens with a weak rebound that will at least keep the indicator above 7,300 points.
However, this rise occurs after eight consecutive days of decline in which the selective has lost 8%. This bad run has led the national stock market to prepare to bid farewell to a fateful September with losses of 7.4%. In the quarter, it accumulates a sharp 9.8% drop from the 8,098 points shot in August. So any rebound attempt on Friday will be pure makeup.
It will all depend on how investors handle the inflation data that will be known throughout the day in both the Eurozone and the US, as this reference will undoubtedly mark the next monetary policy decisions on both sides of the Atlantic.
The consensus points to an increase in the CPI from 9.1% to 9.7% in September. But the German benchmark announced on Thursday (with prices rising by 10%, well above expectations) raises concerns that the gap between the indicator and the European Central Bank (ECB’s target), set at 2% medium-term term, will become even greater. Lake.
This would force the monetary body to increase the aggressive tone of its monetary policy. And the market cuts since the October meeting will bring another 75 basis point rate hike, repeating the move the institution initiated in its previous meeting.
That pace of increases and the expectation that the ECB will not let go of the accelerator pedal is exactly what has made bond yields rise in debt markets in recent weeks.
That profitability (which moves inversely to price) indicates what an investor demands in exchange for buying Spanish debt. And the data shows that secondary market borrowing costs have risen significantly as a result of increased market tensions. It was only in September that the Spanish 10-year bond yield rose from 2.7% to 3.4%, which is currently round. It started the year at 0.5%.
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.
