The Ibex-35 is up 0.5% to 8,200 points, with investors highly aware of the Fed meeting
The European stock markets are trying to regain some of the lost ground of recent days. The wave of selling in the major equity and fixed income markets shows that, despite this attempted recovery, the market floor is still highly uncertain.
“We don’t expect the increases to be relevant as many investors will be waiting for what the Fed does and says on Wednesday before adding risky asset positions,” Link Securities analysts say.
For now, after the new blow yesterday, the Ibex-35 xxx continues to rally, given investors’ belief that if central banks want to contain high inflation, they will be forced to raise their benchmark interest rates to the level they will end at.” said experts. On Wall Street ahead of the Fed meeting, the S&P 500 entered what’s known as a “bear market” last night, losing more than 20% since its last high, which was reached on January 3.
Faced with the recovery attempt in European stock markets, bonds continue to reflect the tension with which the market arrives at this Fed meeting, the conclusions of which will be known tomorrow, Wednesday. A 50 basis point rate hike is expected, without ruling out 75 basis points, and there are nerves about what Jerome Powell might say about future plans.
Against this background, the 10-year bond yield is falling after the strong gains of the time, but still remains above 3.3%, while that of the German bond is 1.61%. The yield of the Spanish 10-year bond, in turn, yields the 3% that it far surpassed yesterday.
With the euro trading at $1.0442, oil prices are trading just above the European benchmark Brent price of $122 a barrel, while the US West Texas hovers around $121.
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.
