Spain’s stock market leads Europe’s gains in a week when publicly traded companies’ accounts take over from macro data
The Spanish stock exchange resumes strong gains in the hands of three of its major stocks: IAG, Iberdrola and Repsol, which rose more than 2% in the first trading stages.
After a week of strong volatility, markets are entering the second half of October with their sights set on the new round of corporate earnings taking over macro data and becoming key players in the world’s financial markets.
This week, some 60 publicly traded companies in the S&P 500 will be releasing their quarterly accounts on Wall Street, after four of the largest U.S. banks did so last Friday with numbers that were generally positive in an environment of rising interest rates and payment default under control.
Link Securities analysts recall that the key today also lies in the medium-term forecasts that the key executives of the companies offer their investors, especially given the impact of inflation on the evolution of their respective activities.
At the moment, they are indicating that, while results dominate the news for the week, medium-term price gains will remain strongly in the mood of investors, thanks to their determination on central banks’ monetary policy. “It was precisely the rebound in US annual inflation expectations announced last Friday by the University of Michigan that caused sharp declines in US stock markets in the last session of last week,” they say.
They explain that the recent rise in the price of crude oil and the ensuing rise in gasoline prices would have pushed inflation expectations higher for the first time since May, further highlighting that central banks’ fight against rising prices will take a long time.
It is precisely in the commodities market that oil is maintaining the upward path of recent sessions, with a barrel of Brent, a benchmark in Europe, already trading close to $93, while the US West Texas surpasses $85.4.
Source: La Verdad
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