The Capricorn loses 8,500 points in a day also marked by the dividends of Inditex and Banco Santander
The European stock markets are holding their breath as the week starts with central banks once again taking center stage in the market. The Ibex-35 is down 1.69% to 8,439 points, with Fluidra being the most bearish stock in the market, down 5.51%, followed by Rovi and Solaria, up 4.83% and 4.6% respectively .
Investors are extremely cautious ahead of the Federal Reserve meeting, the results of which will be announced Wednesday, with doubts about what the institution’s next move on monetary policy will be.
Until recently, as the organization’s president, Jerome Powell, anticipated, the market expected an accelerated rate hike of 50 basis points until recently. The move would take place for the first time since 2000. It was in May of that year, with Alan Greenspan at the head of the central bank, when interest rates went from 6.00% to 6.50%. A move that the institution was forced to reverse shortly afterwards.
Fears of an economic slowdown after learning that the world’s largest power shrank by 1.4% in the first quarter (year-on-year) could limit the increase to 0.25 points. However, the Fed knows that such a move would signal that the economic situation is worse than expected, which in turn could trigger a bad reaction in the market.
In addition, employment data continues to improve, supporting the rise in interest rates to curb inflation. But without a doubt, striking the balance between controlling price increases without harming growth is the biggest challenge facing central banks around the world.
At the moment, investors also have no support from the macro, after the publication in China of the official PMIs and the manufacturing PMI prepared by the agency Caixin. All of these indicators show contraction in monthly activity at the fastest pace since the start of the pandemic in early 2020.
Within the national trading floor, the protagonists of the day are Santander and Inditex, two market giants opening the week with dividend payments. The Cantabrian entity will pay an additional ordinary dividend in 2021 for a gross amount per share of EUR 0.0515 per share, while Inditex will pay its ordinary interim dividend for 2021 for a gross amount of EUR 0.465.
Meanwhile, the commodity price of oil is slowing slightly in its climb with a barrel of Brent, a benchmark in Europe, at $106, while the US West Texas is trading at $103.
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.
