Unicaja Banco replaces Siemens Gamesa in the roster and becomes the sixth bank in the indicator
European stock markets are trying to recover from the declines left in the market by the world’s major central banks last week, which, despite putting the brakes on rate hikes, launched an aggressive message to make it clear that inflation is the main target to beat
With less than two weeks left until the end of the year, experts believe investors just need to process these messages and wait for “stabilization as the best possible outcome.”
In this environment, the Ibex-35 recovered 0.3% to 8,169.8 points. For example, the largest increases were recorded by Repsol (+1.64%), Naturgy (+1.55%), Telefónica (+1.36%), Acciona Energía (+1.25%) and Solaria (+1, fifteen %). On the other hand, Enagás (-3.65%), whose shares have discounted the dividend that will be paid on December 21, closed negatively, followed by Grifols (-2.16%), Rovi (-1.83%), Colonial (-0.67%). ) and Logista (-0.59%), which debuted today at Ibex 35, replacing PharmaMar.
Another major player in the market was Unicaja Banco, after the Ibex-35 Technical Advisory Committee confirmed that the entity will be the value that will replace Siemens Gamesa Renewable Energy in the main Spanish market index from December 27. after the takeover bid for the energy company.
The entity, which will also join the Ibex-35 Banks, debuted on the stock exchange in June 2017 at EUR 1.10 per share. The price of its titles is now around 0.94 euros and, after an increase of almost 12% this year, its capitalization is 2,500 million euros. With its establishment, the Ibex-35 will again have six listed banks (Santander, BBVA, CaixaBank, Bankinter, Sabadell and Unicaja).
Unicaja’s entry into the Madrid squad will see it in turn leave the Ibex Medium Cap, where the stock will be replaced by Talgo.
In addition to specific values, the experts agree that central banks will remain very present during the last sessions of the year. “There are two important things that central banks – and the ECB in particular – are not telling us,” Bankinter analysts say. The first, according to the experts, is that the interest rate hikes needed to bring inflation back to 2% in the short term cannot be implemented because that would lead to a severe recession, via worsening employment “and they are not prepared to to get rid of those costs”.
Second, at Bankinter, they remember that while they have restrictive monetary policies, they can’t allow the stock markets to rise and the bonds to depress their yields. “For this reason, its aggressive dialectic is as focused on fighting inflation as it is on curbing stock markets and bonds. They try to influence as much as possible with their messages to hold back a market that, if it were to recover quickly, would would expose them and dilute the effects of their tighter monetary policy,” they explain.
Meanwhile, the price of a barrel of Brent in the commodities market is also recovering positions above $80, while the US West Texas is close to $76.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
