Siemens Gamesa, protagonist of the session for the rumors pointing again to a takeover bid from Siemenes Energy
The Spanish stock market is slowing down after three consecutive days of strong gains in which the Ibex-35 rose from 8,200 points to 8,500 points. That’s the level it manages to reach in the early trading stages with a timid rise that will have to wait for Wall Street to open up to consolidate.
One of the big protagonists of the day is Siemens Gamesa, which was the most bullish value of the day on Tuesday. And it’s that rumors of a takeover bid from Siemens Energy have gained momentum these days, as the agency picks up Bloomberg as the company prepares a bid to take over the third it hasn’t yet owned by the wind turbine manufacturer. Siemens Gamesa’s stake would be valued at around EUR 3,140 million at current market prices.
Also note the evolution of Repsol which, benefiting from the rise in oil prices, could be aided this Wednesday by the improvement in the recommendation of HSBC analysts, who are raising their advice on the value from ‘hold’ to ‘buy’. .
While investors are keeping the compass button activated, analysts are warning that the recent rally in western stock markets today will be “limited.”
Link Securities’ analytics department believes these increases are primarily the product of two factors. On the one hand, high investor pessimism, “reflected in multiple confidence indicators, something that usually works well as a contrarian indicator in the stock markets, favoring this kind of reaction.” On the other hand, “the high level of overselling that many securities and the major indices presented, something that often leads to strong rallies as well.”
Of the company, however, they believe that “we are witnessing one of the typical upswings that bear markets usually experience.” In addition, they currently do not identify any solid catalysts that could alter the markets’ underlying downward trend, “as growth in major economies slows, inflation is likely to rise and interest rates maintain their upward trend.”
With no major macroeconomic references to the day, with the exception of new inflation data in the eurozone and the United Kingdom, investors are still waiting for the evolution of China’s confinement policy and US Federal Reserve (Fed) messages, after which the president of the organisation, Jerome Powell, reaffirmed yesterday that fighting inflation is the institution’s main objective.
So the markets are discounting two more rate hikes of 50 basis points, double the usual 25 points, at the next Fed meeting, again stimulating long-term bond yields, which are moving in reverse towards price.
In particular, the treasury yield is approaching 3% again, a level from which it diverged last week with the wave of bond purchases by investors seeking assets more confident in equities. In Europe, the movement is more moderate, but the 10-year German newspaper remains above 1%, while the Spanish one is around 2%.
In the commodities market, the price of oil is rising again and a Brent-type barrel, a benchmark in Europe, is above USD 112, while the West Texas of the United States is above USD 111, at a time when the cross between the euro and the dollar (currency in which commodity prices are expressed) is around $1.05, and many are already warning of near-term parity given the different pace of monetary policy on both sides of the Atlantic.
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.
