The Governing Council of the European Central Bank (ECB) will carry out the first interest rate hike in the euro zone on Thursday since July 2011.
The The Spanish stock market fell 1.18% on Wednesday and stayed a while above 8,000 pointsdragged by the bank, which picked up profits after pulling the day before, waiting for the European Central Bank (ECB) to raise interest rates tomorrow.
At the end of the session, the IBEX 35, the main Spanish index, left 96.20 points, 1.18%, up to 8,028.90 integers. In the total for the year, drop of 7.86%.
With this Wednesday’s drop, the IBEX 35 breaks a streak of three consecutive winning sessions.
Like the Spanish market, the negative trend prevailed in the rest of Europe after the strong gains made the day before, a day when investors are already focusing on the ECB meeting this Thursday and also, in the reopening of the Nord Stream 1 gas pipeline.
In the end, only Milan fell more than Madrid, 1.60%; while London fell 0.39%; Paris, 0.27%; and Frankfurt, 0.20%.
The euro, which strengthened on Tuesday against the dollar, down slightly on Wednesday, to $1.02while on the debt market, the yield on the German ten-year bond remains at 1.27%, and that of the Spanish, at 2.46%.
The Spanish risk premium reaches the 122 basis points.
Investors are waiting for the ECB meeting on Thursday which would raise interest rates more than expected, and increase them by fifty basis points.
At Thursday’s meeting, the institution is also expected to unveil details of the anti-fragmentation program aimed at containing risk premiums from “peripheral” countries.
In this sense, another center of attention continues to be Italy, where this Wednesday the Italian Prime Minister, Mario Draghi, urged parliament to ‘rebuild’ its national unity coalitionafter the crisis caused by his partner Movimiento 5 Estrellas (M5S), which forced him to present his resignation, which he has for the moment reconsidered until the rest of the parties decide.
In Europe, investors are also very aware of the possibilities reconsideration gas flow in the Nord Stream 1 pipeline this Thursday.
Russia is keeping Europe in suspense over the aforementioned gas pipeline, warning that even if the flow resumes this Wednesday after ten days of technical shutdown for maintenance work, it could happen immediately new problems due to the repair of turbines abroad due to sanctions.
Across the Atlantic, Wall Street is trading higher on Wednesday pending the publication of new trading results.
In the Spanish market, the biggest falls were for him Sabadell Bank, which left 2.42%; followed by Bankinter, 2.29%; Yes conduct2.19%.
BBVA it also lost 2.12%; Santander, 2.05%; Inditex, 1.04%; Telefonica0.95%; Iberdrola, 0.63%; Yes Repsol0.17%.
ArcelorMittalon the other hand, is the value that increased the most1.15%; Acerinox, 0.88%; Yes Narrator0.52%.
The price of a barrel of Brent, a reference in Europe, fell by 0.42% to 106.90 dollars at the close of the Spanish market.