Aug. 26 () –
The Ibex 35 has closed the session this Friday with a fall of 1.51%, deepening the weekly decline to 3.20%, which has led it to end at 8,063.9 integers, its lowest level since the end of July, after the speech of the president of the Federal Reserve (Fed) of the United States, Jerome Powell, at the summit of central bankers in Jackson Hole, held in Kansas City between yesterday and today.
Powell has warned that companies and households will have to endure “some pain” as a toll to tackle the high rates of inflation that the country has been experiencing for months. He has reiterated the objective of the Federal Reserve to control inflation until it reaches the level of 2%, and all this despite the moderation shown by the rise in prices in July in the United States, when it stood at 8 .5% in the interannual rate, compared to the 9.1% marked in June.
In this way, the Fed continues to be blunt with its ‘more hawkish’ course, which could lead to a new rise of 75 basis points at its next meeting, scheduled for September.
Thus, the Madrid team has not only closed the week in negative, but also today’s session: it has fallen by 1.51%, putting the brakes on the level of 8,000 points, and chains eight days with decline, its worst streak since November 2017.
However, he has not been the only one. In the United States, the Dow Jones lost 1.6%, the S&P500, 1.91% and the Nasdaq, 2.4%, while the European indices have also turned ‘red’. The Ftse 100 in London has closed the session with a drop of 0.7%, the Cac in Paris, has fallen by 1.68%, the Dax in Frankfurt, 2.26% and the Ftse Mib in Milan, 2 .49%.
In Spain, most companies have closed negative today, highlighting the falls of Meliá (-4.06%), PharmaMar (-3.91%), Solaria (-3.78%), Inditex (-3.76 %), Cellnex (-3.51%), Fluidra (-3.15%) and IAG (-3.06%). On the other hand, only Banco Sabadell (+1.00%), Repsol (+0.19%), Enagás (+0.10%) and Acciona Energía (+0.05%) have finished on positive ground.
The XTB analyst, Joaquín Robles, highlights that the Ibex 35 has also been affected this week by the rise in raw materials, especially gas and oil, and by the fall of several relevant indicators, which has reawakened doubts about the evolution of the Spanish and European economy.
In statements to Europa Press, Robles highlighted the rise in the price of gas, which has reached a new high of over 300 euros/Mwh due to fears of new interruptions in supply after Russia announced new interruptions due to maintenance tasks. in the Nord Stream gas pipeline. “Although the level of inventories is reaching its target, high prices could weigh down the purchasing power and profit margins of households and companies,” adds Robles.
Similarly, the barrel of Brent oil has recovered 100 dollars before the 180-degree turn of the Organization of Petroleum Exporting Countries and its partners (known as Opec +) who would be considering the possibility of cutting production again. However, at the close of this Friday, it was trading at 99 dollars per barrel, with an increase of 0.35%, while the West Texas registered a price of 92.4 dollars, with a decrease of 0.15%.
The worse prospects for the European economy and the difference between interest rates have led the euro to trade below the dollar practically all week. There has also been an increase in bond yields, with the German bond yielding 1.30%, the Spanish 2.5%, and the US above 3%.
Next week will continue to be marked by the outlook for the next rate hikes and the evolution of raw materials, according to Robles. The start of September could bring with it an increase in trading volume as investors continue to weigh the risks facing the economy in this last stretch of the year.
Among the most important data, the analyst points to the publication of the CPI data in Europe, industrial production in China and employment in the US.
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