economy and politics

The Ibex closes the week with a fall of 0.65% due to the uncertainty of the US debt ceiling

The Ibex closes the week with a fall of 0.65% due to the uncertainty of the US debt ceiling

May 26. (EUROPE PRESS) –

The Ibex 35 has closed the session this Friday at 9,191.1 points, which means that it has fallen 0.65% in the week, after several days in which attention has been focused on negotiations in the United States on the country’s debt ceiling.

The day of this Friday has finally closed with an increase of 0.82%, after the selective fell 0.3% in the first hours of trading.

“The Spanish stock market fell for the second consecutive week dragged down by the loss of confidence caused by the long negotiations on the extension of the debt ceiling in the US and the economic data published this week. Germany has technically entered recession after accumulating two consecutive quarters of growth negative, although the ECB continues with its intention to continue raising interest rates two or three more times”, explained the XTB analyst, Joaquín Robles.

In the macroeconomic field, it was also known this week that the gross domestic product (GDP) of the United States grew by 0.3% in the first quarter, the same figure that had been initially estimated.

On the other hand, inflation in the United Kingdom fell from double digits for the first time in seven months, reaching 8.7% last April.

In this context, in the session held this Friday, Fluidra was the main value on the rise (+2.11%), ahead of ArcelorMittal (+1.80%), Indra (+1.67%), Rovi (+1.64%), CaixaBank (+1.63%) and Acerinox (+1.56%).

On the opposite side were Solaria (-0.94%), Sacyr (-0.89%), Acciona Energías Renovables (-0.63%), Bankinter (-0.62%), Unicaja Banco (-0, 53%), IAG (-0.28%) and Acciona (-0.28%).

In this context, the German DAX index advanced 1.20% this Friday, while the French CAC 40 rose 1.24% and the Italian FTSE MIB rose 1.16%. In this way, the Euro Stoxx 50 has increased by 1.59%, while the British FTSE 100 has progressed by 0.74%.

At the close of the European trading session, a barrel of Brent was trading at $76.74, up 0.63%, while West Texas Intermediate was at $72.51, up 0.95%.

In the debt market, the yield on the 10-year Spanish bond closed the week at 3.605%, compared to 3.591% on Thursday. Thus, the risk premium against German bonds has stood at 106.8 basis points, one tenth less.

In the foreign exchange market, the euro depreciated 0.07% against the dollar at the close of the trading session, reaching 1.0718 ‘green tickets’ per euro.

Next week will continue to be marked by discussions on the debt ceiling, since an agreement is expected in the coming days. The London Stock Exchange will remain closed on Monday, as it is a bank holiday, and the United States Stock Exchange, as it is Memorial Day.

Also, on Tuesday the inflation data for Spain will be released, while on Wednesday that for the euro area will be published, together with unemployment in Germany. Various manufacturing production data will be released during the week and on Friday the United States will report its unemployment rate.

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