Investors welcome the results of retail giant Walmart, one of the best thermometers for the evolution of consumption in the US
The Spanish stock market is maintaining momentum from the last sessions and the Ibex-35 has already chained 11 consecutive sessions in which it recovered 5%, the best run since September 2018. With the revaluation of 1% this Tuesday, the selective decreases its annual decline to -2.2% and attacks 8,500 points.
Higher trading volume on Tuesday could consolidate gains, with investors avoiding weak data from the ZEW confidence index of economic sentiment in Germany. The indicator fell to -55.3 points in August, the lowest level since October 2008.
Despite the recent gains, investor sentiment continues to show some caution, so experts are not ruling out the possibility that major stock market indicators may take a breather in the coming days after the recent gains.
Within the Ibex-35, the rise of more than 2.5% recorded by three major stocks such as ArcelorMittal, Repsol and Telefónica, which top the ranking along with Pharmamar and Acerinox, also rose by more than 2%, stands out.
Another key player of the session is IAG, which rose 1.7% after confirming that it had converted its 100 million loan to Globalia into a 20% stake in Air Europa as planned.
With only five negative readings, the market also received good news from the US, where the main benchmark of the day was expected: the results of WalMart and Home Depot, two of the major thermometers of private consumption in the country, which represent almost two third of GDP.
It should be remembered that the retail giant has cut its earnings outlook twice in recent months, reflecting rising costs and the impact of inflation on consumer buying behaviour. But in the end, the numbers were better than expected, with earnings of $5,150 million and revenue up 8.4% in the last fiscal quarter to $152,860 million. In the US alone, sales rose 7.1% to $105.1 billion, ahead of the $104.4 billion market forecast.
The reference is certainly positive. But the company has reiterated that it faces major challenges between now and the end of the year, indicating that given the impact of inflation, consumers are maintaining their forecast for essential products compared to other more discretionary consumptions such as clothing.
Meanwhile, in the commodities market and after the recent declines in recent days, the Brent barrel is recovering some ground to continue at $95.5, while the US West Texas is once again above $90.
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.
