The Ibex 35 brakes pending further economic data and tensions between the United States and China

The Ibex 35 opened the session on Wednesday by exceeding the 8,100 point mark. However, shortly after the selection of the Spanish stock market, the Spanish stock market began to register declines amid tensions between the United States and China and pending various economic benchmarks to become known.

Exactly, the national index subtracted 0.07%, to 8,084.8 points. Few values ​​supported the Ibex 35. Among the strongest increases, those of Solaria (+1.30%), Grifols (+1.16%) and Aena (+0.76%) stand out. On the contrary, the biggest drops were those of CaixaBank and Banco Sabadell, which subtracted 3.03% and 2.84% respectively.

In this way, the Ibex 35 challenged the streak of two consecutive days on the rise. Tuesday’s rise was 0.15%. almost coincided with the landing of the Speaker of the US House of Representatives, Nancy Pelosi, in Taiwan.

Keys for today’s session

Eduardo Bolinches

The Biden administration has ignored threats from the Chinese government, who has insisted in recent days that would take “strong” measures in case US policy shifts to Taiwanese soil.

The Asian giant sees Taiwan as a rebel province, despite the fact that the island has declared its independence and enjoys the support of the United States and the European Union (EU).

[Taiwán denuncia la incursión de 21 aviones militares chinos por la llegada de Pelosi a la isla]

European stock markets started the session with a mixed trend. Frankfurt fell by 0.24% and London by 0.28%; while Paris added 0.02% and Milan 0.10%. The Euro Stoxx 50 rose 0.01%.

This Wednesday’s session will feature several references. Among them, the publication of the PMI indices for the services sector of the Eurozone and some of its major economies.

References

This indicator is particularly relevant, both because of the high weight that the sector has in the economy of the region and because of the contraction of the manufacturing sector experienced on Monday.

In the afternoon, and in the US, the final reading of the US services activity indices, the services PMI and the non-manufacturing ISM will also be released.

[La cartera de acciones de Eduardo Bolinches para la sesión de hoy]

Private employment data provided by the ADP payroll processor will also be known. These numbers go an idea of ​​the strength of the country’s labor market which will serve as advance of the minutes which will be known next Friday.

OPEC+composed of the Organization of the Petroleum Exporting Countries and 10 other petroleum producing countries, will meet on Wednesday to discuss a possible increase in production for the month of September.

“Despite US President Joe Biden’s visit to Saudi Arabia on July 15 to seek to boost oil production, growing fears of a global economic slowdown limit the case for a further increase in supply,” explain Link Securities analysts.

Waiting for the cartel to decide, Brent, a reference in Europefell 0.45% and the price fell to $100.09 per barrel.

fed

The opening of the session with a mixed trend in Europe took place after Wall Street’s negative close. The Dow Jones lost 1.23%; the S&P 500, 0.67% and the Nasdaq, 0.16%.

The New York trading room was affected by the tensions between the United States and China, but also by statements by several members of the Federal Reserve (Fed)which chose to continue raising interest rates aggressively to fight inflation.

[La recesión en EEUU hace pensar a los inversores que la Fed suavizará la subida de tipos en septiembre]

The most moderate was Chicago Fed President Charles Evans. assured that expects an increase of 0.50 point in September then several increases of 0.25 until the beginning of the second quarter of 2023.

On the contrary, Cleveland Fed Chair Loretta Mester argued that “the Fed still has some work to do to see inflation come down steadily for several months in a row.” A) Yes, left the door open for another 75 basis point hike at the next meeting in September.

Its counterpart of fed from Minneapolis, Neel Kashkari, informantof that he was surprised by the interpretation of the markets which the american central bank will lower interest rates in 2023, after raising them rapidly this fiscal year.

These declarations dampened the mood of investors and revived fears of a possible entry into recession of some of the main Western economies consequence of the harshness of central banks.

At the opening of the session, the euro rises against the dollar and was traded at 1,016 “greenbacks”.

The interest of the Spanish 10-year bond it rose to 1.94%; while Spain’s risk premium fell to 114.2 basis points.

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