The Ibex-35 is torn between red and green in anticipation of final US election results
Strong volatility in European stock markets, moving this Wednesday to the rhythm that marks the vote count in the US midterm elections. The Ibex-35 goes from red to green, playing the 8,000 points after knowing that the Republicans’ victory won’t be as clear as expected as the Democrats can take over the Senate.
A situation that, although positive for the market, will have to wait a few days to know the final results. As explained by Renta 4 Banco analysts, by sector, “a Republican victory could be positive for oil companies (less restrictions) and health (less reforms) and negative for renewables (less support) and defense (less aid to Ukraine)”.
So, and with the prospect that the Democrats will finally show more strength than expected, the energy companies are on the rise on the Spanish stock exchange. One of the fastest growing is Iberdrola, which has just presented its new strategic plan with a firm commitment to renewables in the US, with which the election result will have a big impact on the company.
Other stocks like Naturgy or Siemens Gamesa are also in the positive part of the table, as are the banks, with Bankinter and Banco Sabadell at the top of the selective list.
However, these gains are not strong enough to offset losses in the rest of the stock, led by Solaria, which lost more than 3%, Pharmamar and Colonial, which fell more than 1% each.
Investors are also closely monitoring the release of the US CPI on Thursday. “Some figures showing that inflation in the country is starting to ease would be very well received by bond and equity markets, so they could continue to recover ground, as this could mean the Fed is less aggressive from now on. would be. refers to the process of official rate hikes,” Link Securities analysts said.
Conversely, if inflation is reluctant to slow, these markets will most likely fall.
On the other hand, in the commodities market, the price of a barrel of Brent oil traded slightly down at $95.2 while the US West Texas was around $88.5.
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.
