The Spanish selection expects above 9,000 points to the central banks, which will decide on new rate hikes this week
Neither the recession fears, nor the doubts about the next moves of the central banks, nor the price crisis have prevented investors from starting the new stock market year with renewed courage. European stock markets had their best start to the financial year in more than 20 years in January.
Specifically, and in the Spanish case, the Ibex-35 bids farewell to the month with an increase of 9.8% to 9,034 points. This is the best start since January 2001, when the indicator rose 11%.
Behind the recovery, the major tourist values are particularly striking. Companies like IAG are up more than 37% in January, while Meliá and Amadeus are also at the top, with cumulative increases of 33% and 18%.
The banks, key players in the results of the entities this week, are also benefiting from the favorable environment resulting from the interest rate hikes. The most bullish this year is Banco Sabadell, up 36%, while gains of more than 14% in BBVA or Banco Santander.
Investors have regained their risk appetite in recent weeks, in part due to the economic outlook being slightly better than expected, or at least not as catastrophic as the collapse expected for the winter. However, caution has been imposed on equity markets in recent sessions ahead of the meetings that the US Federal Reserve (Fed) and European Central Bank (ECB) will hold this Wednesday and Thursday.
For weeks, the market has been anticipating a new rate hike (25 basis points in the US and 50 basis points in Europe). But he questions the intensity of the message from monetary organizations, which analysts say will not hesitate to be more aggressive in their speeches to avoid the risk of investor complacency.
While everything points to a downward trend in inflation in the US, which will allow the Fed to ease the pace of its rate hikes again, inflation in Europe is proving more resilient, making ECB action more difficult. Link Securities’ analytics department.
Analysts from the PIMCO manager also believe that if the eurozone’s recent economic resistance – which managed to avoid recession in 2022 – continues, “the prospect of the ECB will have to tighten policy more than currently expected in the financial markets “. explanations could become clearer’.
Awaiting what central banks say, and following the bullish rally at the start of the year, some traders have taken the opportunity to collect gains in recent sessions, with the Ibex-35 losing a slight 0.17% on Tuesday .
Meanwhile, on the commodities market, the price of a barrel of Brent is up 0.6% to $85, while the US West Texas is around $78.5.
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.
