Ibex 35 closes at June high after Powell speech

It should be noted that several members of the Federal Reserve (Fed) have spoken in the last few hours, which has reinforced the caution of investors. Raphael Bostic and Mary Daly said the Fed will likely raise interest rates past 5% and hold them there for some time.

Tuesday’s agenda includes the following items speeches by several central bankersincluding one by Jerome Powell, Chairman of the Federal Reservewho appeared at 4:00 p.m. Spanish time from Stockholm to bid farewell to the last governor of the Bank of Sweden. Also present at the meeting Andrew BaileyGovernor of the Bank of England, and Pablo Hernandez de CosGovernor of the Banco de España.

During this meeting, the president of the American central bank stressed the need to adopt “unpopular measures” to curb inflation. “Price stability is the foundation of a healthy economy and provides immeasurable benefits to the public over time. But restoring price stability when inflation is high may require unpopular short-term measures.as we raise interest rates to slow the economy,” Powell said.

He also underlined the central bank’s independence from political powers, a fact that allows the Federal Reserve to “take necessary actions regardless of short-term political factors.”

For the rest, investors keep an eye on the evolution of the economy. The key data for the week will be US inflation for the month of December.

“The key this week is US inflation on Thursday. They should backtrack to cut the overall interest rate that much. (from +7.1% to +6.5%) as the underlying rate (from +5.7% to +6.0%). If so, we will go from the foreseeable lethargy between Monday and Wednesday, due to the absence of benchmarks that move the market, to a firm new twist“Bankinter experts predict. “This rebound could be more generous than we thought,” they add.

Investors await the key data of the week, namely US inflation for the month of December.

The US earnings season also kicks off this week, with a slew of bank accounts expected on Friday. Today, the figures for the fourth quarter of Bed Bath & BeyondThe retailer, which posted a loss of $393 million, is stepping up the pressure on the retailer, which has racked up a loss of more than $1.1 billion in the first three quarters of its fiscal year. Also, noteworthy are those of Jefferies, which have been published in the last few hours, with a 57% drop in profit in the fiscal fourth quarter.The drop in investment banking revenue of 52% for the period ending in November.

STOP ON THE ROAD

The Ibex accumulates in these few sessions of 2023 a revaluation of almost 6%.. The selective Spanish index covered the bearish gap of June and it seems that, little by little, is approaching the 9,000 point resistance..

“Although he has improved his technical aspect considerably, it should be noted that as he approaches 9,000 points, There is an increasing chance that we will eventually see a halt on the way down.“César Nuez, analyst at Bolsamanía and head of Trader Watch, comments.

Spain’s selective index has racked up 8% gains since the December 20 lows. ” It is certain that there will be a break at the end. before continuing the ascent”, insists Nuez.

Within the Ibex, the highlights are the increases in the following values Naturgy, Unicaja and Acciona Energiaand declines in colonial and steel companies (ArcelorMittal and Acerinox), as well as in Grifols and Rovi. In the Continuous Market, watch for strong rallies in PrisaAudax and Airtificial.

OTHER MARKETS

The euro is trading at $1.0728. Oil prices are rising moderately after strong increases in the last session. Brent is at $80.06 and WTI at $75.16.

Gold is stable ($1,878) and silver is down 0.5% ($23.75).

Bitcoin is trading at $17,290 and Ethereum at $1,328.

The yield on US 10-year bonds is 3.632%.