Sunday, August 14

The FTSE-100 and the Ibex 35 open a bullish session in Europe in negative, awaiting the FED

The main European stock indices open slightly higher, rises that do not seem capable of being sustained, and it is possible that, as the day progresses, many investors, especially the short-term ones, will choose to continue reducing their risk positions, at the same time. waiting to know what the Fed is doing.

In that sense, It should be remembered that tomorrow the Governing Council of the ECB and the Monetary Policy Committee of the Bank of England (BoE) meet, so prudence is imposed before knowing so much the perception that the main western central banks have of the macroeconomic scenario, as well as what are their different strategies to deal with it.

Shortly before the opening, the United Kingdom has released the CPI for November. The UK consumer price index (CPI) stood at 5.1% in November, compared to 4.2% the previous month, which represents the largest increase since September 2011, the National Office reported on Wednesday Statistics (ONS). This strong rise was due to the rise in the prices of household energy costs, fuel, second-hand cars and clothing, indicated the ONS. Inflation is well above the Bank of England’s target of keeping it at 2%.

Inflation data will also be released in France, Spain and Italy, while in Germany the reference to follow will be the wholesale price index for November. In the US, the data to be published are the mortgage market index and retail sales for November.

At the corporate level, the largest Italian insurer, Generali, has said it will return up to 6.1 billion euros ($ 7 billion) to shareholders through 2024 in dividends and with its first buyback in 15 years, while CEO Philippe Donnet, seeks to be re-elected. Donnet, who aims to extend his term in April amid opposition to his strategy from two major shareholders, also spent up to € 3 billion on mergers and acquisitions (M&A) in insurance and asset management.

Among the values ​​that increased the most at the opening were the shares of ASML Holding, which recorded more than 2%. CRH rises more than 1.3% and BMW, which opens at 89,275 euros.

Inditex shares are listed in negative territory, losing more than 3.6% in the first minutes of trading after announcing results, while Philips gives up more than 2% at the opening.

The publication yesterday in the US of the production price index (PPI) for the month of November, an index that rebounded more than expected both in monthly and inter-annual terms, weighed down the behavior of the European and US stock markets, causing a sharp turn to the decline in the main indices of these markets, which led most of them to close the day with significant declines.

The focus on the Fed

Wall Street indices closed lower in a waiting session before the Fed meeting. The Dow Jones fell 0.30%, over 35,544 points. The S&P 500 lost -0.75% to 4,634 points, while the Nasdaq 100 closed at 15,914 points after dropping just over 1% at the close. For its part, the VIX rose sharply more than 7%, over 21.89.

While waiting for what the Federal Open Market Committee of the US Federal Reserve “says and does” TODAY, investors have chosen to reduce their risk positions again. An environment in which inflation continues uncontrolled in developed economies and which, far from beginning to moderate, as predicted by central banks and many governments a few months ago, keeps increasing.

The estimates are in line with the fact that the FED accelerates the process of reducing bond purchases in secondary markets. Thus, if you are currently acquiring about $ 15 billion less per month, it is very likely that you will announce that, from now on, you will buy $ 30 billion less. In that case, “The current bond purchase (QE) program would end at the end of March instead of June, as the Fed announced it would happen at the time,” Link Securities experts acknowledge.

Once this program is completed, the way for the first rise in official interest rates is clear. In this sense, it should be noted that the markets are already discounting between two and three rate hikes in 2022.

Oil prices fell for the third day in a row on rising expectations that supply growth will outpace demand growth next year, despite the fact that it is considered that the variant of the omicron coronavirus does not slow down mobility as sharply as the previous variants of COVID-19. At the moment, Brent oil futures are down 1.02% at $ 72.96, while West Texas futures are down 1.23% to $ 69.86.

Bitcoin is experiencing an upward journey today with rises of 3.33% at $ 48,235.9.

In the EUR / USD pair, the euro is trading 0.11% higher at 1.1269.

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