Selection increases are capped at 0.1% pending new guidance from central banks and new set of corporate results
The Spanish stock market continues to rise, albeit in a more subdued manner after three consecutive weeks of gains. The Ibex-35 is up a slight 0.13% above 8,900 points, although the target of over 9,000 points has still not been reached.
And that the main gains were in heavyweights such as Banco Sabadell, which was up almost 2%, BBVA, Enagás and Arcelor Mittal, with gains of more than 1.5%. In contrast, the decline of ACS (-2.1%), Cellnex (-2.05%), Aena (-1.02%) and Sacyr (-0.98%) is notable.
Investors remain cautious ahead of a week in which new clues may emerge on the future of monetary policy. “The discourse that still prevails among investors is that of a soft landing for major economies, which would mean that central banks would from now on slow down their rate hike process only to end it within months.” the analysts at Link Secrities.
The truth is that, despite this being the general sentiment, some weaker-than-expected macro data were released last week, raising questions about this theory. “Central bankers’ insistence that they will continue to raise reference rates to moderate inflation did not help either,” say the experts.
However, the market should have already assumed that the tone of the next meetings of the organizations will be just that: louder speeches, with softer actions.
Investors are also closely following the evolution of the quarterly results, which have been somewhat weaker than expected so far. And that analysts’ forecasts had already been revised downwards.
On Wall Street, some 90 listed companies in the S&P 500 are reporting to the market this week, with leading giants in their sector such as Tesla, Micrososft, Visa, Mastercard, Johnson & Johnson or Boeing as key players. In Spain we will have to wait until Thursday to know the results of Banco Sabadell.
In any case, the experts explain that, in addition to the figures for the last quarter and for 2022 as a whole, operators should pay attention to the forecasts released by the main managers of the sector on the evolution of their activities in the coming months.
Meanwhile, the price of oil in the commodity market continues its upward trend, rising 1% above $88.5. For its part, US West Texas moves at $82.5.
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.
