Stock market’s first reaction to the US Fed rate hike
The Ibex 35 closed the session down 0.49% to 8,084.9 points, in a scenario marked by the avalanche of corporate earnings and the meeting of the United States Federal Reserve (Fed), which yesterday announced: with the market closed, interest rates up 75 basis points, to a target range between 2.25% and 2.5%, the highest level since December 2018.
It was announced on Thursday that the United States would enter a technical recession in the second quarter of 2022, when gross domestic product (GDP) fell by 0.2%, after already dropping 0.2% in the first three months of the year. 4% to have shrunk.
It has also been published that economic confidence in the eurozone deteriorated significantly in July, when the European Commission’s Economic Sentiment Indicator (ESI) fell to 99 points from 103.5 the previous month, its worst reading since February 2021. , with Spain and Germany leading the decline of the bloc’s major economies.
In Spain, unemployment fell by 255,300 people between April and June this year, the biggest drop in a second quarter since 2018, and the number of unemployed fell below three million for the first time since 2008.
Similarly, the government has introduced a bill in Congress proposing to temporarily tax interest and net commissions from financial institutions with income in excess of $800 million at a rate of 4.8%, and at a rate of 1.2% on the total sales of energy companies that bill more than 1,000 million euros per year, and a fine for those companies that pay the tax to users.
At the company level, Santander posted attributable profit of 4,894 million euros in the first half of this year, 33% more year-on-year (+21% in constant euros), while Sabadell posted a profit of 393 million euros, 78.6% Lake.
Telefónica, for its part, earned 1,026 million euros net, while Repsol achieved a net profit of 2,539 million euros, after doubling its profit of 1,235 million euros for the same period last year.
In this scenario, the largest increases in the Ibex 35 are presented by Aena (+3.81%), Solaria (+3.58%), Acerinox (+3.15%), Cellnex (+2.22%), Arcelormittal (+1.92%), Ferrovial (+1.62%) and IAG (+1.38%).
On the negative side, PharmaMar (-13.77%), Grifols (-10.7%), Fluidra (-9.11%), Rovi (-8.12%), Sabadell (-5.03%), Repsol (-4.87%) and Indra (-2.92%).
As for the rest of banking securities, CaixaBank is down 2.48%, Santander is down 2.39% and Bankinter is down 2.31%, while BBVA is up 0.19%.
The Ibex 35 underperformed the rest of the main European equity markets, which saw gains of 1.3% in Paris, 0.88% in Frankfurt and 2.1% in Milan, while London saw a slight retracement of 0.04% showed.
On the other hand, the price of a barrel of Brent oil, a benchmark for the old continent, stood at $107.76, up 1.07%, while Texas stood at $98.12, after rising 0. .92%.
Finally, the price of the euro against the dollar was 1.0167 greenbacks, while the risk premium was 118 basis points and the yield on the 10-year Spanish bond was 1.952%.
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.
