The selective is up 1.4% amid rumors of a takeover bid for the telecommunications infrastructure company
The Spanish stock market is enduring the still lingering uncertainty about economic developments and the Ibex-35 closed the session with an increase of 1.42%. A rebound that allowed the roster to hook into its third week of raises and regain 8,900 points.
Within the indicator, Cellnex’s strong uptrend stood out, with its titles skyrocketing 9.84% to nearly $36.5. The company’s share price rose more than 10% in the session’s most optimistic moments amid rumors of a possible takeover bid by American Tower and the Brookfield fund. Some rumors that coincide with the recent departure of Tobías Martínez as CEO of the company.
Meliá (+3.22%), CaixaBank (+2.54%), Bankinter (2.42%), Aena (+1.97%) and Indra (+1.83%) followed the company in the top the table. On the contrary, ACS (-1.68%) and followed by Fluidra (-1.16%), Acciona Energías Renovables (-0.84%), Colonial (-0.62%), Red Eléctrica (-0, 54% ) and Logista (-0.17%). %).
Investors rallied after Thursday’s sharp drop amid renewed fears that central banks would make a mistake and “push the machine too hard” with interest rates leading to a recession.
However, experts agree that this was the excuse to take profit after several days of gains in which many stocks and indices reached strong overbought levels.
As a matter of fact, Link Securities’ analysis department recalls that both global inflation and the resistance of major economies to the crisis are positively surprising. “But, and it is something we have always warned about, the biggest risk to the markets is central bank action, necessary to fight inflation that could rise again at any moment, which could be much more damaging in the long run for the global economy than a short-term tightening of financial conditions.”
The experts conclude that investors should realize as soon as possible that the era of negative interest rates and free liquidity is completely over. “The rules of the game have changed and must be adapted accordingly,” they indicate.
While all this happens in the medium term, short term business results are again the focus. Despite the fact that analysts have significantly lowered their earnings expectations, the season has not been too positive so far. “Companies are expressing concern about the macroeconomic uncertainties they face, with demand weakening in many sectors, which could ultimately limit their ability to grow profits,” the experts say.
In addition, and despite Friday’s gains, the continued trickle of announcements of structure cuts (layoffs), especially in the technology sector, is also clouding investor sentiment. The latest to join the wave of departures was Google, announcing the layoff of 12,000 employees, 6% of the global workforce.
Meanwhile, the oil price on the commodity market continues to rise above USD 86 per barrel Brent-type, a benchmark in Europe. For its part, the US West Texas closed out weekly trading around $80.6.
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.
