The Ibex-35 rebounds timidly threatened by rate hikes and the COVID wave in China

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Spain’s stock index Ibex-35 opened higher on Monday, but its evolution was far from the rebound that sometimes accompanies equity markets in the Christmas period, in a market worried about the tightening of monetary conditions and the damage to the Chinese economy due to the rapid spread of COVID-19.

At the opening on Monday, just two weeks to close the year, the selective of the Spanish stock market took advantage of expectations of more stimulus measures in China and the US decision to buy more raw to increase your reserves.

However, optimism was held back by fears that Beijing’s de-escalation of COVID-19 restrictions, which in principle opens the possibility of a strengthening of the economy in the medium and long term, will slow down drastically in the face of the sharp increase in infections, which would confirm a survey among businessmen published on Monday.

For the rest, the market continues to assimilate the aggressive messages brought last week by the Federal Reserve and the European Central Bank, warning that interest rates could rise more and for longer than projected by the markets.

In the absence of 10 days, the Ibex-35 accumulates an annual fall of 6.9%, with a cut of 3% in the month of December, the worst last month of the year since 2018.

At 08:05 GMT on Monday, Spain’s selective Ibex-35 was up 14.80 points, or 0.18%, at 8,127.30 points, while the FTSE index of large European stocks Eurofirst 300 advanced 0.31%.

In the banking sector, Santander (BME:SAINT) lost 0.26%, BBVA (BME:BBVA) was down 0.09%, Caixabank (BME:CABK) yielded 0.20%, Sabadell (BME:KNOW) fell 0.54%, and Bankinter (BME:BKT) was left 0.07%.

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Among the large non-financial securities, Telefónica (BME:TEF) was recorded by 0.34%, Inditex (BME:ITX) advanced 0.53%, Iberdrola (BME:IBE) was up 0.33%, Cellnex (BME:CLNX) gained 0.45% and the oil company Repsol (BME:REP) rose 1.04%, in a context of rising crude oil prices.

In the negative, Enagás (BME) stood out:ENAG), which lost 3.68%, after receiving a cut in the recommendation of JP Morgan (NYSE:.JPM).

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