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IBEX yields after PMI pending Powell’s re-election

U.S.A.IBEX yields after PMI pending Powell's re-election

FILE PHOTO: A Spanish flag waves at the Madrid Stock Exchange, Spain, June 1, 2016. Reuters / Juan Medina

Nov 23 (Reuters) – In the wake of Asian stock markets and Wall Street re-election following Jerome Powell’s re-election as Fed chairman, the Spanish stock market‘s main index opened on Tuesday in line with key European markets, the day the eurozone and the United States The disclosing PMI index will be issued for

The US president renewed Powell for a second term as head of the Federal Reserve, bolstering markets’ bets for an early relaxation of his stimulus and an anticipated rate hike in early 2022.

“We expect the return of QE (quantitative easing), which began this November, to be completed in mid-2222, (…) analysts said in a note to clients after the reelection.

“Once debt purchases end, the key to the ‘timing’ of the start of rate hikes will be in meeting the goal of more inclusive full employment in the labor market, although Powell’s re-election (…) Accelerating market rate hikes, with the possibility of a first discount in June 2022, a second in September and a third in December 2022″.

Crude oil prices, on the other hand, fell after reports that OPEC+ may adjust its plans to increase oil production if large consumer countries release crude from their reserves or if the coronavirus pandemic slows demand. Its emergency reserves, a source said on Tuesday.

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At 08:05 GMT, the price of a barrel of Brent crude was down 0.53%.

During the session, markets will be wary of advance data for the euro area and the US PMI for November, which will provide a credible sample of the economic recovery situation from the pandemic.

Thus, at 08:05 GMT on Tuesday, the selective Spanish stock exchange Ibex-35 fell 62.00 points, down 0.70% to 8,759.30, while the index for major European securities FTSE Eurofirst 300 fell 0.77%.

Following the last closing surge with Powell’s re-election as head of the Fed, the banking sector began to record losses: Santander 0.61%, BBVA down 1.62%, Caixabank down 0.25%, Sabadell down 0.67% Gone, and Bankinter fell 0.52%.

Among the prices that fell the most, Telefónica stood out, which in the previous session collected its biggest gain in a year and fell as much as 3.20% on the day KKR’s offer for Telecom Italia dented shares of European Telecom. which was added on Tuesday as a cut in Berenberg’s recommendation of a “hold”.

Among other large non-financial securities, Inditex fell 0.19%, Iberdrola 0.65%, Selnex 0.65% and oil company Repsol declined 0.02%.

At the top, Colonial Real Estate stood out, which scored 1.36%, and its competitor Merlin, which appreciated 0.53%, after SocGen called for both “buy” recommendations to improve its outlook for the sector as a whole. picked up for

(Information from Dario Fernandez, edited by Jose Muoz)

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