The more than likely tightening of monetary policy in Europe and the United States in the face of high inflation, together with higher energy prices and shortages in Europe, contained the main Spanish stock index, which rebounded slightly on Wednesday after two sessions in negative.
As Europe’s standoff with Russia over energy supply continues to escalate and money markets bet on a 75 basis point (bp) hike in the US Federal Reserve interest rate, short-term attention was on the Thursday’s meeting of the ECB, where a sharp rise in interest is expected.
“The best thing would be to raise 75 bp (up to 0.75% in the deposit rate and 1.25% in credit) instead of 50 bp to finish the job as soon as possible. We will see what the message is and if it provides any details specifically on the TPI (anti-fragmentation mechanism),” analysts at Bankinter (BME: BKT ) said in a daily report.
“If it rose 50 bp and its message did not gain definition, bad for the market. The stock markets remain blocked (after the Fed’s comments in favor of greater monetary rigor) since Jackson Hole and until we see the American inflation of the 13th and the Fed of the 21. Later, we will see”, they added.
The selective Spanish stock market Ibex-35 closed 13.70 points higher on Wednesday, 0.17%, to 7,855.90 points, while the FTSE Eurofirst 300 index of large European stocks lost 0.39%.
In the banking sector, Santander (BME: SAN ) lost 1.06%, BBVA (BME: BBVA ) fell 0.04%, Caixabank (BME: CABK ) advanced 0.57%, Sabadell (BME: SABE ) fell 1.11%, and Bankinter left 0.32%.
Among the large non-financial stocks, Telefónica (BME: TEF ) fell 1.26%, Inditex (BME: ITX ) lost 0.23%, Cellnex (BME: CLNX ) gained 1.51% and oil company Repsol ( BME: REP ) lost 4.04%.
Some energy stocks stood out, given the possibility of an intervention from Brussels to help the sector with its liquidity problems.
Iberdrola (BME: IBE ) rose 2.10%, Naturgy gained 0.58%, while Endesa (BME: ELE ) advanced 3.11%.
In the area of companies with exposure to renewable energy, Siemens Gamesa (BME: SGREN ) appreciated 0.20%, Solaria gained 6.09% and Acciona Energy gained 4 .37%.