Ibex 35 holds steady at 8,000 despite new data pointing to economic contraction

The main indicator of spanish bagthe Ibex 35, closed Friday on an increase of 0.49%, to 8,051.60 points. During the week, it gained 1.33% and thus breaks with three weeks of decline. The daily rise occurred despite macroeconomic data for the whole of the European Union and of Germanyshowing symptoms of economic contraction.

The agency S&P published the PMIs for the whole of the European Union. Services fell to 50.6 points against an estimated 52 points; the composite fell to 49.4 points, against the expected 51, and the manufacturer fell to 49.6 points, against the calculated 51 points.

In the case of Germany, they all ended with figures below those expected by the consensus and below 50 points, a level that makes the difference between growth and contraction. The composite PMI fell to 48 points, or around 50.1%; manufacturing fell to 49.2% from an estimated 50.6%, and service fell to 49.2 points from a forecast of 51.2. The numbers are accelerating the drums of recession, but investors are ignoring it.

The market continues to assimilate the decision of the European Central Bank (ECB) to raise interest rates to 0.5% to curb inflation and try to support the euro, although this decision will dampen the economy. The “hawks”, the bankers who seek a more aggressive and restrictive monetary policy, seem to have taken control of the Governing Council of the eurozone central bank. The agency said that now the percentage increase will be discussed meeting by meeting based on inflation and macroeconomic data. It cannot therefore be said with certainty that the increase in the price of silver forecast for the September meeting will be 50 basis points. It can be 0.5% or more, but it can also be less.

The President of the ECB, Christine Lagardegave details of the anti-fragmentation mechanism, called TPI (Transmission protection instrument) which requires the purchase of public debt to control risk premia. It will be applied with force due to the instability in Italy after the resignation of mario Draghibut bounces will benefit pedro Sanchez. Of course, harsh conditions will be imposed on the beneficiary states, in particular through a sharp reduction in the deficit. Despite this, the acquisition of debts can be unlimited if the situation requires it. This is not to the liking of Germany, the economic engine of the euro zone.

Back on the Ibex 35, the biggest promotions concerned Solarium4.90%; Cellnex3.77% and Merlin Properties, by 3.75%. The steepest falls have been recorded Bankinter5.78%; Bank Sabadell4.81% and CaixaBank, by 3.55%. More discreet increases in the rest of the stocks of the Old Continent with increases of 0.25% for the About 400.08% for the ftse 1000.07% for the Ftse Eband 0.05% for Dax 40.

The euro, which had just rebounded by almost 1% with the rate announcement, resumed losses on Friday and at the close of the Ibex 35 it fell back to 1.02 dollars. The fastest speed of Federal Reserve of the United States to raise interest rates covers the aggressiveness of the ECB and the energy crisis in Europe does not help either.

Huge falls in the European bond yields. The yield on the Spanish 10-year bond fell more than 9% to 2.24% and the yield on the German “bund” fell more than 15%, to 1.02%, at the close of the trade. European stock exchange. The Italian bond fell 4%, to 3.4%, due to the strong political crisis in the country. Italy’s situation is reported on its risk premium, which is at 240 basis points, while that of Spain is contained at 122 basis points thanks to the ECB.

Oil rebounded more than 0.5% at the same time. type of barrel Brentlargest in the world, was worth 104 dollars and the type West Texas, a benchmark in the United States, was trading for $97 on the futures market. The gold it was at $1,730 an ounce. In the crypto market, the bitcoins stretched the weekly rebound over 10% and crossed the $23,600 mark.

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