The spanish bag shut up last session of the week in positive after four consecutive days in red and rebounded 1.81%, leading it to recover 7,900 points, buoyed by the possibility that the US Federal Reserve (Fed) will not undertake a more aggressive interest rate hike. With that, annual losses are reduced to 8.81%, after Tuesday’s bump due to the announcement of the tax on energy and banks.
The session started with a timid rise which settled at 0.2% in the first moments until approaching 1%, going up falls recorded yesterday with an eye on Italy and the non-acceptance of the Prime Minister’s resignation Mario Draghi and without losing sight of the fear of the ghost of recession. Ferrovial leads the session with 3.73%; followed by Acciona Energy, 3.57%; and Grifols and Inditex, both with 3.50%. They are also followed by the banks, which after the fall in the middle of the week, entities such as Banco Santander or BBVA added 2.91% and 2.54% respectively, while on the energy side Iberdrola stands out ( 0.95%) and Repsol, 0.72%. Telefonica, for its part, stood out by falling 1.50%. On the losing side, only three other stocks finished: Siemens Gamesa lost 0.53%; Ena, 0.24%; and REC, 0.06%.
Like the Spanish market, the rest of Europe closed higher, led by Frankfurt, which gained 2.76%; while Paris added 2.04%; Milan, 1.84%; and London, 1.69%. Europa se ha decantado por el rebote a pesar de la crisis política déatada en Italia, donde Mario Draghi seguirá siendo el primer ministro al menos hasta el miércoles, cuando verificará en el Parlamento if cuenta con mayoría suficiente, tras la falta de apoyo de uno de The the most important partners in your coalition, the Five Star Movement (M5S). Additionally, the market weathered the release of negative macro data in China, where the economy contracted 2.6% in the second quarter of the year.
The week was marked by the announcement of the new temporary tax on large financial institutions and large energy companies, the release of the CPI data for June in the United States and the start of the results and parity in the eurodollar cross. The general inflation rate in the North American country stood at 9.1% in June, half a percentage point above May’s price rise and its highest level since November 1981. while the core CPI was 5.9%. This situation does nothing more than add pressure on the Federal Reserve (Fed) to raise interest rates and the market is already pricing in a rise by 75 basis points at the central bank meeting scheduled for next week, although there has been speculation that the increase could reach 100 basis points.
Among this Friday’s data, China’s second-quarter GDP release also stands out, which shows an economic contraction of 2.6% from previous three months, where it increased by 1.4%. It is the second-worst growth figure for the world’s second-largest economy, only behind the 9.8% contraction in the first quarter of 2020. Additionally, yesterday began the US trade earnings season, which kicked off with the publication of JPMorgan Chase Accounts and Morgan Stanley, which posted lower profits in the second quarter compared to the same period last year.
This Friday, the presentations continued with that of Citigroup, which posted an attributed net profit of $4,547 million (4,538 million euros) in the second quarter of the year, with a decrease of 26.6%; BlackRock, which obtained an attributed net profit of 1,077 million dollars (1,075 million euros), which is equivalent to a decrease of 21.8%, and Wells Fargo, which displays an attributable result 2,839 million dollars (2,834 million euros), i.e. 48% less than in the second quarter of 2021.
On the other hand, the price of a barrel of Brent-grade oil, a benchmark for the Old Continentwas back above $100, trading at $101.48, up 2.39%, while Texas settled at $98.10, down 2.32%. On the foreign exchange market, the euro regained ground against the dollar, trading against 1.0090 “greenback”, even if it is very close to a situation of parity. In the debt market, the Spanish risk premium was around 118 basis points at the close of trading, with interest required on the ten-year bond at 2.273%.