The Ibex 35 falls 1.25% and moves away from 7,900 points after the Fed

MADRID, 3 Nov.

The Ibex 35 falls 1.25% and moves away from 7,900 points after the Fed


The Ibex 35 has registered a decrease of 1.25% in the session this Thursday, which has led it to lose the barrier of 7,900 points, after the president of the United States Federal Reserve (Fed), Jerome Powell, has considered that it is "very premature" to think about a possible pause in interest rate hikes in the country, while pointing out that the price of money still has to go further into restrictive territory.

Powell conveyed this message yesterday afternoon, when he also announced that the Fed had unanimously approved a fourth consecutive rise in the country's interest rates of 75 basis points, to place them in a target range of between 3.75% and the 4%.

Investors learned this Thursday of the Bank of England's decision to raise the reference interest rate for its operations by 75 basis points, which will now stand at 3%, its highest level since 2008, in response to the escalation of inflation, which will be around 11% in the fourth quarter of the year.

This increase is the most aggressive carried out by the entity since 1989 and extends to eight consecutive meetings the sequence of increases in the price of money undertaken by the Bank of England, which adopted the decision by a majority of seven votes in favor and two against, since one of the directors preferred to raise half a percentage point and another an increase of a quarter of a point.

On the other hand, the member of the Executive Committee of the European Central Bank (ECB) Fabio Panetta has estimated that the body will stop raising rates somewhat before inflation drops to the 2% target, while he has bet that the pace of monetary normalization is done with a certain measure due to the current environment and its consequences.

In Spain, the Public Treasury has placed this Thursday 4,207.62 million euros in a new auction of bonds and obligations, within the expected average range, and has awarded 823.2 million in the 20-year 'green' bond that it launched by first time last year.

In addition, it has been known that the number of unemployed registered in the offices of the public employment services fell by 27,027 unemployed in October in relation to the previous month (-0.9%), its largest drop in this month within the historical series , thanks, above all, to the behavior of the services sector and agriculture.

In this scenario, the Spanish selective closed at 7,868.9 points. The biggest rises in the Ibex 35 have been presented by Repsol (1.45%), Indra (1.37%), PharmaMar (1.26%), Mapfre (1.09%) and Meliá (0.98%).

On the contrary, in the negative area, the declines of Rovi (-5.46%), Ferrovial (-4.1%), Sacyr (-4.07%), Cellnex (-3.64%), Merlin have stood out (-2.71%) and Colonial (-2.43%).

The rest of the European stock markets have also ended with falls, with the exception of London, which has advanced by 0.62%. The setbacks have been 0.54% in Paris, 0.95% in Frankfurt and 0.43% in Milan.

The price of a barrel of Brent quality oil, a reference for the Old Continent, stood at 95.44 dollars this Thursday, with a decrease of 0.75%, while Texas stood at 88.96 dollars, with a drop of 1.16%.

Finally, the price of the euro against the dollar stood at 0.9746 'greenbacks', while the Spanish risk premium stood at 110 basis points, with the interest required on the ten-year bond at 3.312%.