The selective loses 0.76% after the poor inflation figures in Germany
Tuesday’s sharp gains give way to profit-taking in another session marked by inflation data in euro-zone economies and a new wave of corporate earnings.
However, the Ibex-35 lost 0.76% to 9,322 points, thanks in part to Indra’s upward push, which rose nearly 5% after posting much better than expected results by the market ArcelorMittal, Amadeus, Repsol and Telefónica, all with gains of between 2.30% and 1.1%, accompanied by the value at the top of the table.
However, they didn’t exert enough strength to offset Colonial’s reds, with a 5% decline followed by declines of nearly 3% in Bankinter, 2.57% in Acciona Energías Renovables and the surrounding area around 2.5% for Merlin and Iberdrola.
Another big protagonist of the session was Ferrovial, which closed with gains of 0.62% per day with the value embroiled in strong controversy after learning of its decision to move its headquarters from Spain to the Netherlands.
Markets had started the session optimistic. However, they turned red after a weak opening on Wall Street and especially after the release of inflation data in Germany. The CPI for the German economy was 8.7% in February, worse than expected. But the data that most surprised the market was the rise in food prices, which shot up 21.8% year-on-year.
Against this background, and given the prospect of more resilient inflation than expected, investors – including those in the equity market – are increasingly following the evolution of debt markets, where the required yield on bonds (which move in the opposite direction to price) continues to increase. rise without brake in recent days.
This movement can be interpreted as the markets discounting higher rate hikes by the European Central Bank (ECB) and the US Fed. Specifically, the yield on the US 10-year bond was 4% on Wednesday, while the German bond of the same maturity, the main reference in Europe, is already above 2.7%. The interest on the one-decade Spanish bond also exceeded 3.73% yesterday, 2014 maximum.
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.
