The selection is at the June 2021 highs with the push from Telefónica and after learning that the CPI moderated less than expected
Bittersweet session in European markets following the release of inflation data in the US, which caused losses in the opening of Wall Street. Despite gains moderating after this reference, the green numbers resisted at the close, with the Ibex-35 rising 0.57% to 9,263 points, its highest since June 2021.
Telefónica was the main supporter of the increases, with a closing revaluation of 3.56% after learning of the acquisition of a 4.92% stake in Vodafone by Liberty Global, its partner in Virgin Media O2 in the UK .
Behind them were ArcelorMittal (+2.58%), Acerinox (+2.01%), Rovi (+1.79%), IAG (+1.74%), Cellnex (+1.50%), Meliá (+ 1.50%) and Grifols (+1.46%). Meanwhile, the lower part of the table was led by Acciona Energía (-1.38%), Mapfre (-1.26%) and Sacyr (-1.14%).
The day was marked by US CPI which, as described by analysts for the Pimco executive, “appears to be moderating more slowly than initially expected”. Specifically, inflation fell to 6.4% in January, barely one-tenth less than the 6.5% recorded in December and, making the market even worse, two-tenths higher than the 6.2% recorded by the analysts expected.
For its part, core inflation stood at 5.6%, two-tenths less than the previous month, but also above the expected 5.5%.
Analysts say that “while the report did not significantly surprise or change inflation forecasts, we believe the combination of the new trajectory, January’s strong salary report and the likely recovery in retail sales and industrial production later this week point to another upside.” trends.” review of the Federal Reserve’s (Fed) summary economic forecasts (SEP) at its March meeting.
That is, the organism has the favor of a very resistant economy to continue its fight against inflation. And to raise interest rates further after March, the deadline to reach the ‘top’ that was expected at the end of last year.
Of Pimco, they believe that “the path the Fed will take remains unknown. And they recall that in the meantime “banks are tightening credit standards and consumers are having to resort to dwindling savings to keep up their consumption.”
Meanwhile, in the commodities market, the price of a barrel of Brent oil, a benchmark in Europe, traded at $85.14, down 1.60%, while US West Texas traded at $78.73.
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.
