Spain’s main stock index opened with a further dovish cut on Tuesday, as the market packs the latest signals on future moves by major central banks, with a special focus on a possible tightening of the Federal Reserve.
The latest macroeconomic data showed stronger-than-expected strength in the United States, which could pave the way for larger-than-expected Fed interest rate hikes for longer to tame persistent inflation.
By contrast, the market welcomed comments from ECB chief economist Philip Lane, who said that although the European Central Bank will have to raise interest rates several more times, inflation is already close to its peak.
“A message that supports the idea of a brake on the pace of interest rate hikes by the ECB. This would be in line with what the market is pricing in for the last meeting of the year next week, an estimated rate hike of +50 bps (basis points),” said analysts at Renta 4 (BME:RTA4).
For the rest, the markets remain attentive to the news about the reopening of the Chinese economy, with the expectation that the authorities will announce the withdrawal of more restrictions due to COVID-19 this Wednesday.
“Now, the main risk is in the pace of reopening that if disorderly could damage the recovery in expected consumption, however, the message remains one of gradual reopening. All this relaxation of measures should begin to be noticed in the macroeconomic indicators of December, “they said in Renta 4, which stressed that the day will be sparse in macroeconomic indicators of weight.
At 08:05 GMT on Tuesday, Spain’s selective Ibex-35 was down 32.90 points, or 0.39%, at 8,337.20 points, while the FTSE index of large European stocksEurofirst 300There was no change.
In the banking sector, Santander (BME:SAINT) lost 0.66%, BBVA (BME:BBVA) fell by 1.22%, Caixabank (BME:CABK) yielded 0.74% and Sabadell (BME:KNOW) fell by 1.14%.
The fall ofBankinter (BME) stood out:BKT), which was left 2.85% after receiving a cut in the recommendation of JP Morgan (NYSE:.JPM).
Among the large non-financial securities, Telefónica (BME:TEF) was recorded 0.23%,Inditex(BME:ITX) yielded 0.12%,Iberdrola(BME:IBE) was revalued by 0.14%, Cellnex (BME:CLNX) fell 0.91% and the oil company Repsol (BME:REP) lost 0.62%.
Among the rest of the electricity companies, Naturgy (BME:NTGY) fell by 0.45%, whileEndesa (BME:ELE) yielded 0.17%.