The Ibex 35 closes the week with a fall of 3.59% due to fear of more interest rate hikes

The selective signs the worst week since mid-March, when it lost 6.09% due to the US banking crisis.

( July 7 () –

The Ibex 35 has signed this Friday the worst weekly close since mid-March (when the US banking crisis collapsed the markets) with a decline of 3.59%, which has led the selective to stand at 9,248.8 integers due to the fear of a more aggressive monetary policy for a longer time than expected by investors, since data has been released that pointed to the economic and labor strength of the United States.

The selective has thus moved away from the annual highs with which it closed the first half of the year, around 9,600 points, after harvesting this Friday the fourth consecutive session in red with a decline of 0.39%; however, in the year it maintains a positive return of 12.39%.

The key moment of the week occurred this Thursday, when the US economic indicators in June were better than expected and the ADP employment report surprised with job creation data that doubled market expectations and would provide arguments for the Reserve Federal (Fed) to maintain an aggressive policy.

In fact, one of its members, Lorie Logan, stated that the strength of the labor market and inflation still far from 2% (in June it stood at 4%) required a more restrictive monetary policy (the Fed rates are currently now at 5-5.25% and the minutes of the last meeting, known this Wednesday, revealed a harsh tone on the part of its members).

In this context, pessimism spread through Wall Street indicators (the Dow Jones, its main index, registered a provisional drop of 1% in the week), which ended up infecting Europe.

This Friday, in addition, the official US employment report was released, whereby the unemployment rate fell by one tenth in June, to 3.6%, although job creation has been less than forecast and has allowed most stock markets to recover some of the ground ceded yesterday.

For her part, the president of the European Central Bank (ECB), Christine Lagarde, warned this Friday in an interview with ‘La Provence’ that the institution “will not sit idly by” if it sees a “simultaneous” rise in prices. business margins and wages that pose a threat to price stability.

Thus, the European markets have registered notable corrections in the weekly calculation: Milan has discounted 1.6%; London 3.06%; Frankfurt 3.37% and Paris 3.89%.

HOLDS 9,200 POINTS IN THE SESSION DESPITE THE WEEKLY DECREASE

The Spanish selective, against the current of Europe, has fallen 0.39% this Friday, but has managed to hold the 9,200 points, which it lost in the early stages of the negotiation.

On the European macroeconomic agenda for this Friday, the 0.2% drop in industrial production in May compared to April has been known; the rise of 0.7% in Italian retail sales in May, also in the monthly rate, while France has improved its trade deficit in May to stand at 8.4 billion euros.

Thus, most of the European markets closed the last session of the week with rebounds after the losses on Thursday: Paris added 0.42%, Frankfurt 0.48% and Milan 0.99%; while London, like Madrid, has opted for decreases and has yielded 0.32%.

On the day, the biggest increases within the Ibex 35 have been recorded by Unicaja (+3.75%), Fluidra (+3.57%), Banco Sabadell (+3.12%) and Bankinter (+3%), while the most pronounced decreases have corresponded to Iberdrola (-4.28%), Laboratorios Rovi (-2.28%), Cellnex (-1.71%) and Naturgy (-1.37%).

At the end of the session, the price of a barrel of Brent crude, a reference for the Old Continent, rose 1.55%, to 77.7 dollars, while Texas stood at 72.98 dollars, 1.64%. further.

In the foreign exchange market, the value of the euro against the dollar stood at 1.0965 ‘green bills’ after revaluing 0.7% in the session against the US currency; while the interest on the Spanish bond has closed at 3.679% after adding almost thirty basic points in the week due to the prospect of high rates, with the risk premium (the differential with the German bond) at 104.7 points.

THE KEYS FOR THE NEXT WEEK

XTB analyst Joaquín Robles has indicated that next week will continue to be conditioned by economic data and the prospects for the following decisions by central banks.

Among the most outstanding data, Robles pointed out, are the confirmed inflation data for June in the US and the main European economies, interventions by members of central banks and European economic forecasts and the minutes of the last ECB meeting.

At the end of the week, the season of corporate results will begin with the big American banks at the head through entities such as JP Morgan, Well Fargo and Citigroup.