After starting the week in the red on fears about the evolution of the Chinese economy, the Spanish selective opened on Tuesday with an uncertain trend, as the prospect of a relaxation of COVID-19 measures by Beijing was offset by waiting for new references on interest rates.
Chinese stocks rallied on Tuesday after falls suffered on the eve and on the news of a briefing called by the Chinese government to give new details on the management of the pandemic, which has led to speculation about a possible progressive lifting of restrictions in the face of recent protests in the country.
The expectations of reopening in China also pulled the price ofpetroleum, up 2.24% in theBrent, a reference for Europe.
In any case, the markets were still waiting for the evolution of inflation and for new signals about the future action of central banks.
Along with the publication of the Federal Reserve’s Beige book, which provides a snapshot of the US economy by regional central banks, it is expected that on Wednesday the words of its chairman, Jerome Powell, will provide more guidelines on the direction of interest rates, to which the US employment report will be added on Friday.
On Tuesday, New York Federal Reserve President John Williams acknowledged that borrowing costs may decline in 2024 as inflationary pressures ease.
On this side of the Atlantic, the inflation figure for November in Spain was much lower than expected, so the attention will now turn to the German indicator that is published at 14:00, and that will serve as an appetizer of the CPI of the euro area expected for Wednesday.
“To highlight yesterday’s statements by Christine Lagarde, president of the ECB, stating that she would be surprised if inflation in the Eurozone had peaked in October, given the high uncertainty that persists about the cost of energy and its pass-through to the rest of the CPI components,” said analysts at Renta 4 (BME:RTA4) in its daily report.
“The data published will be decisive for the ECB to soften the pace of rate hikes at its meeting on December 15 from +75 to +50 bps (basis points), an amount on which the market is divided.”
At 08:17 GMT on Tuesday, Spain’s selective Ibex-35 was up 5.40 points, or 0.06%, at 8,328.60 points, while the FTSE index of large European stocksEurofirst 300advanced 0.44%.
The progress of the oil company Repsol (BME) stood out:REP), which rose 1.22%, in the context of higher crude prices.
Among the other large non-financial securities, Telefónica (BME:TEF) fell 0.44%,Inditex(BME:ITX) advanced 1.21%,Iberdrola(BME:IBE) was revalued by 0.09% and Cellnex (BME:CLNX) fell 0.03%.
In the banking sector, Santander (BME:SAINT) rose 0.41%, BBVA (BME:BBVA) was recorded by 0.18%, Caixabank (BME:CABK) yielded 0.17%, Sabadell (BME:KNOW) fell 0.09%, andBankinter(BME:BKT) was revalued by 0.35%.