Slight rebound from the Ibex 35, with Santander and Grifols in the lead, and awaiting Powell’s speech.
The Ibex 35 closed higher, like most European markets, on Tuesday (Ibex: +0.14%, 9,172; Dax: -0.23%; Cac: -0.23%; Ftse MIB: +0 .34%; Ftse 100: +0.28%). After last day’s falls on the back of tensions between China and the United States and speak the implications that the latest shocking US jobs data could have on future Federal Reserve (Fed) decisions.Today is the time to calm down and to keep an eye on precisely what Jerome Powell is saying.
President of the US Central Bank speaks at a conference at the Economic Club of Washington. and what he has to say about the Fed’s plans is of great interest after jobs data that… the Fed’s plans for further rate hikes..
” It is one of this week’s key meetings for investors. Juan José Fernández-Figares, director of analysis at Link Securities, recognizes this meeting.
From Danske Bank, they add that this event “could give Powell the opportunity to mitigate the very “dovish” reaction of the markets. at his press conference last week if he wants to, especially in light of the jobs report and the strong ISM data we’ve seen since.”
In this regard, it should be noted that the President of the Atlanta Fed, Raphael Bosticsaid Monday that January’s strong jobs report for the first half of the year increases the possibility that the central bank will have to raise interest rates higher than what politicians had expected. If a stronger than expected economy persists, “That will probably mean we have to work a little harder. »Bostic said in a phone interview with Bloomberg News.
For his part, the president of the Minneapolis Fed, Neel Kashkarisaid on Tuesday that January’s explosive job growth is proof that the central bank still has work to do to control inflation. “We have a job to do. We know raising rates can slow inflation,” Kashkari said in an interview on CNBC. ” We need to raise rates aggressively to contain inflation.and then let monetary policy act on the economy.
Today’s agenda includes the publication of more company results, such as those of . BP oh BNPand also other relevant developments, such as the fact that the Supreme Court ruled in favor of Ence for the 60-year extension of its Pontevedra plant.which led the action to soar on the stock market by more than 27%. He is also in the news Iberdrolabecause it announced the creation of a subsidiary in Germany, Iberdrola Deutschland, and the the appointment of Felipe Montero as CEO on site. It is also a question of Santander, who reshuffled its senior staff in Spain.
Precisely, Santander led the rises in the sec Grifolsby extending its good stock market performance of recent months. Amadeus and Indra were the biggest losers of the session.
On another note, the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points.at 3.35%, as expected. The RBA reiterated that further increases will be needed. This is the ninth interest rate hike since May.
“With a general interest rate of 3.35%, remains well below that of its peerswhich means that the central bank may have to keep raising rates in the coming months. She acknowledged that she should, saying that “further interest rate hikes will be needed in the coming months,” suggesting that the central bank is likely to have to continue raising rates in the coming months. coming months. At least two more rate hikes will likely be needed.“, says Michael Hewson, head of research at CMC Markets in London.
The euro is trading at $1.0697 (-0.30%). Oil is up more than 3%. Brent is at $83.22 and WTI at $76.6.
Gold is up 0.57% ($1,890), and silver is up moderately (+0.55%, $22.35).
The website Bitcoin is trading at $22.999 (-0.05%)and Ethereum at $1,640 (-0.33%).
The yield on the US 10-year bond is 3.63%.