economy and politics

Ibex 35 reduces losses at midday and trades flat after Eurozone and UK CPI

Ibex 35 reduces losses at midday and trades flat after Eurozone and UK CPI

Jul 17. () –

The Ibex 35 reduced its losses at midday on Wednesday and was trading flat (+0.01%), at 11,090.9 points, following the release of the final inflation figures for June in the Eurozone and the United Kingdom.

The Spanish index started lower and seemed determined to lose the 11,000-point mark, however, it subsequently began an upward trend that allowed it to move into profits at midday and seek 11,100 points.

The macroeconomic agenda for Wednesday highlights that the eurozone inflation rate stood at 2.5% year-on-year in June, one-tenth below the rise in prices observed in May, according to the second reading of the data published by the European statistical office, Eurostat, while in the European Union (EU) as a whole the rate fell one-tenth, to 2.6%.

For its part, the United Kingdom’s annual inflation rate stood at 2% last June, unchanged from the rise in prices recorded in May, thus repeating the lowest reading of the index since July 2021, according to data published by the Office for National Statistics (ONS), thus opening the door to a cut in interest rates in August by the Bank of England.

In the United States, industrial production for June and the Beige Book of the Federal Reserve (Fed) will be released this afternoon, with investors looking for clues regarding monetary policy.

In the business field, the board of directors of Lar España, meeting on Tuesday, approved the creation of a ‘Monitoring Committee’ for the voluntary Takeover Bid (OPA) made by the real estate fund Hines and Grupo Lar, through the Spanish company Helios, on the socimi to make decisions and carry out the corresponding actions in relation to said operation.

Furthermore, Grifols has reorganised its board of directors following the resignation of independent directors Claire Giraut and Carina Szpilka Lázaro, thereby breaching the Code of Good Governance by having a minority of independent directors, and the creation of a committee, called the ‘transaction committee’, to monitor the possible takeover bid that would be carried out jointly by family shareholders and the Brookfield fund.

Also in Spain, it is worth noting that the Ministry of Labour and Social Economy will meet this Wednesday with unions and employers in a new meeting to advance the social dialogue table to reduce the working day, after bringing positions closer with CEOE.

In this context, in the middle of trading, the stocks that rose the most in the Madrid selective were Acciona Energía (+2.75%), followed by Acciona (+2.15%), Banco Sabadell (+1.3%) and BBVA, which advanced 1.25%, while on the other side were Merlin Properties, which fell 5%, Acerinox (-3.8%, affected by the ‘ex-dividend’ effect), Mélia (-2.4%) and Inditex (-1.5%).

The main European stock markets also reduced their bearish tone at midday, but were unable to turn to gains, as was the case on the Spanish stock exchange: Milan fell 0.01%; London 0.1%; Paris 0.28% and Frankfurt 0.3%.

The price of a barrel of Brent crude oil, the benchmark for the Old Continent, fell by 0.16% at midday to $83.6, while Texas crude, down 0.05%, stood at $80.72.

On the currency market, the euro against the dollar strengthened by 0.4% to 1.0943 euros, while on the debt market the interest rate on 10-year Spanish bonds remained unchanged at 3.188%, with the risk premium (the differential with German bonds) at 76.5 points.

The troy ounce of gold climbed this morning to a new historical high of 2,482 dollars after the one reached yesterday and continues its upward path on its way to 2,500 dollars.

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