Banking, favored by the ECB’s movement, becomes the main driver of the Spanish selective
The Ibex-35 closed the session this Thursday with a rise of 0.78%, to give a last change at 7,916.80 integers. In this way, the indicator responded to the highest rise in interest rates made by the European Central Bank in its twenty-year history: the institution chaired by Christine Lagarde decided to raise the price of money by 75 basis points, to place it at 1 .25%, with the aim of taming inflation, and despite warnings about economic health. With the latest movement of the Eurobank, the official rate of the euro is at its highest level since 2011.
Monetary institutions prefer in these circumstances to sacrifice economic growth and try to reduce expectations about the evolution of prices. Economic forecasts have darkened. Carlos del Campo, a member of Diaphanum’s investment department, summarizes how the ECB has revised inflation for 2023 upwards with 50% less growth compared to what was estimated in June, which is consistent, in the opinion of this expert, with a technical recession at the beginning of 2023 or even at the end of this year.
The bulk of European indicators also leaned towards the green numbers. Thus, the Ftse Mib of Milan advanced 0.88%, while the PSI-20 of Lisbon gained nearly half a percentage point and the French Cac 40, 0.33%. The exception was the German Dax, which fell around 0.10%.
The banks were the ones that gave the greatest boost to the domestic selective, since the increase in the price of money is positive for their margins, especially for those with the highest volume of business in Spain and in the mortgage segment. Thus, Bankinter was the most profitable, with a revaluation of 6.57%. CaixaBank also scored more than 6%. Sabadell, for its part, advanced by 5.58%.
BBVA and Santander, more internationalized, registered more modest increases, with gains of 3% and 2.77%, respectively.
Among the most bullish values were Solaria (4.74%), Grifols (3.94%) and Rovi (2.99%).
On the negative side, Telefónica, Aena and Red Eléctrica were the worst, with cuts of more than two percentage points.
In the foreign exchange market, the rise in interest rates did not bring about a recovery in the euro, which remained below parity with respect to the greenback.
Spain’s risk premium narrowed by 1.5%, to stand at 112 basis points at the end of trading on the Stock Exchange.
In the raw materials market, rises for crude oil. Both Brent and West Texas barrels were up 1.12% and 1.88%, respectively, at the close of the European session. And the price of gas also rebounded: specifically, it was noted down by 2.4%. The price of an ounce of gold, for its part, fell 0.6% to 1,705 dollars.
On the other side of the Atlantic, an hour after the close of the European stock markets, the indicators moved lower. The Dow Jones, the S&P 500 and the Nasdaq fell between 0.4% and 0.6%.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.