The Ibex falls 2.4% in the week due to monetary tightening

MADRID, 23 Jun.

The Ibex falls 2.4% in the week due to monetary tightening


The Ibex 35 has closed this week with a fall of 2.4%, ending the session this Friday at 9,265.8 points, from the 9,495 at which it closed last week, given the prospects of monetary tightening in various parts of the world .

Compared to Thursday, the selective has fallen 1.06% during the session.

"The Federal Reserve Chairman took advantage of his appearance before the Senate to reiterate his intention to raise interest rates one or two times more. The UK and Norway surprised by raising rates more than expected, while Turkey ended unorthodox policies of its president Erdogan and raised rates sharply to combat inflation", explained XTB analyst Joaquín Robles.

This Friday it became known that the Spanish economy recovered the pre-pandemic level in the first quarter of the year after growing 0.6% between January and March compared to the previous quarter, which is one tenth more than initially expected and also one tenth above the growth registered in the previous quarter.

However, the turnover of companies fell by 4.7% last April compared to the same month in 2022, thus entering negative after 25 consecutive months of year-on-year increases.

On the other hand, the growth of the activity of companies in the euro zone has continued to deteriorate in the month of June, according to the preliminary reading of the Purchasing Managers Composite Index (PMI), which has fallen to 50.3 points since the 52.8 of the previous month, which is the worst result in five months and brings the region closer to stagnation.

In this context, only four companies have managed to close the day in 'green': Cellnex (1.17%), Rovi (1.07%), Telefónica (0.80%) and Logista (0.58%).

Among the other values, those that have fallen the most have been Acciona Energías Renovables (-3.54%), IAG (-3.40%), Banco Santander (-2.85%), Colonial (-2.34%) , Solaria (-2.32%), Repsol (-2.26%) and Unicaja Banco (-2.21%).

The declines in the Ibex 35 this Friday have been in line with the rest of the main European stock market indices. Germany's DAX fell 0.99%, while France's CAC 40 shed 0.55% and Italy's FTSE MIB fell 0.73%. The British FTSE 100 has dropped 0.54% in the session.

On its side, at the close of the European stock market session, a barrel of Brent was trading at 73.66 dollars, 0.65% less, while the West Texas Intermediate (WTI) fell 0.76%, up to 68 .97 dollars.

In the debt markets, the yield of the Spanish bond with a maturity of 10 years closed the session at 3.312%, from 3.449% observed at the close of Thursday. Thus, the risk premium against German debt rose five tenths, to 96 basis points.

In the currency markets, the euro depreciated 0.61% against the dollar, up to 1.0889 'green tickets' for each unit of the community currency.

On Monday of next week, the German business confidence data from the Ifo institute will be released and the traditional central banking forum held by the ECB in Sintra (Portugal) will begin, which will last until Wednesday. In addition, Fed Chairman Jerome Powell will participate in both the Sintra forum on Wednesday and an event in Madrid on Thursday.

Inflation data for Germany and Spain will be released on Thursday. Finally, on Friday the updated data for the United Kingdom's GDP in the first quarter, unemployment in Germany and inflation in the euro zone as a whole will be published.