Stock market moves up 2.2% this week, oblivious to UK crisis


Stock market moves up 2.2% this week, oblivious to UK crisis

The Ibex-35 is down 1.3% this Friday on the expectation of an economic slowdown

The Ibex 35 has posted a 2.21% gain in a week marked by the earnings season, the resignation of the UK Prime Minister, the rise in bond yields and inflation data in Europe.

In the last session of the week, the Ibex lost 1.29% and stood at 7.545 points amid investor concerns that high inflation and successive rate hikes are accelerating the economic slowdown process.

Positive are only Arcelormittal (+2.24%), Acerinox (+0.59%), ACS (+0.51%), Sabadell (+0.38%) and Repsol (+0.3%). On the contrary, the biggest trading day declines on Friday were presented by Grifols (-5.16%), Ferrovial (-4.28%), Fluidra (-3.3%), Solaria (-3.21%) and Inditex (-3.04%).

The rest of the European stock markets also closed the session in ‘red’ on Friday, with the exception of London, which rose 0.37%. The decreases were 0.85% in Paris, 0.29% in Frankfurt and 0.62% in Milan.

Eurozone inflation this week hit a new all-time high of 9.9% in September, although it was one-tenth lower than the initial estimate of 10% published by Eurostat. According to Robles, these data “bring closer to the possibility of another 75 basis point increase at next week’s meeting.”

For its part, the Fed’s Beige Book reiterated the US Federal Reserve’s commitment to contain inflation, even if that means higher unemployment and lower growth.

In this scenario, the banking sector led the gains for the week, driven by the good performance of Bankinter and the prospect of rate hikes, while on the negative side Fluidra stood out, following a downward revision in sales and earnings. for the third quarter, and Grifols, faced the possibility of a US$1 million fine in a class action lawsuit.

The week was also marked by tensions between Russia and Ukraine, and the resignation of Liz Truss as UK Prime Minister after the tax cut plan failed. Also this week, Joe Biden announced a new plan to release 15 million barrels of oil from the US strategic reserve to strengthen energy security, address supply shortages and reduce costs.

The barrel of Brent grade oil, a benchmark for the Old Continent, stood at $92.82 this Friday, up 0.45%, while the Texas stood at $84.67, up 0.45 percent. 18%.

Finally, the price of the euro against the dollar was 0.9796 ‘greenbacks’, while the Spanish risk premium was 113 basis points and the required yield on the 10-year bond was 3.549%.

Looking ahead to next week, the market will pay attention to the meeting of the Governing Council of the European Central Bank (ECB), during which another rate hike is expected, as well as the release of new economic data such as Third Quarter GDP and October inflation in Germany. , consumer confidence and third quarter GDP in the United States.

At the corporate level, Enagás, Iberdrola, Santander, Aena, PharmaMar, Repsol, Ferrovial, Sabadell, Acerinox, BBVA, CaixaBank, IAG and Mapfre will publish their quarterly results.

Source: La Verdad


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