The selective gains 1.83% with investors waiting for the Federal Reserve (Fed) meeting
European equities rallied after a heavily bearish start to the week as investors awaited the important two-day meeting of the US Federal Reserve (Fed) starting Tuesday.
The Ibex-35 leads the rebound on the Old Continent with an increase of 1.83% to 8,590 points with practically all its values positive. IAG and ArcelorMittal led the gains with revaluations of 4.98% and 4% respectively, followed by CaixaBank (+3.95%), Grifols (+3.62%), Sabadell (+3.11%) and Banco Santander (+3.01%). Only Meliá (-1.36%) and Merlin Properties (-0.10%) remained in the red.
On the national trading floor, analysts’ recommendations on the banking sector also gained attention when the entities’ quarterly results were presented. Today, it is BBVA’s turn to gain the approval of Credit Suisse analysts, who have improved their valuation of the company with a price target of Euro 5.6, compared to the 4.8 the bank is currently running around. Their titles say goodbye to the session with increases of more than 1% to 4.90 euros.
In contrast, JP Morgan has lowered Telefónica’s price target from EUR 4.30 to EUR 4.10 per share, below the EUR 4.69 at which the operator is listed.
Money flows back into equity markets as bond prices fall across the board, with investors selling debt and pushing yields (which move inversely with price) back up.
The move is so strong that the 10-year Spanish bond yield is already above 2%, the highest since September 2015, with a risk premium of 105 basis points.
A reaction that is taking place at the gates of the Fed deciding another hike in official interest rates in the fight against inflation, predictably 50 basis points, which would bring them between 0.75% and 1%.
In the commodities market, the price of oil has fallen slightly, with West Texas still above USD 104, while a barrel of Brent, a benchmark in Europe, is trading at USD 107.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
