The selective Spanish lives today a day on the rise. At the moment, the IBEX 35 is trading 1.31% higher at 8,383.50. The values that pull the most on the selective are Solaria (6.32%), Siemens-Gamesa (4.74%) and ArcelorMittal (3.63%). In the mid-session, only three stocks are listed in the red: Telefonica (-1.42%), Indra (-1.0 /%) and MERLIN Prop. (-0.46%).
Solaria’s increases come on a day in which it receives a recommendation upgrade from RBC, which raises its recommendation to “same as the sector” with a target price of 18 euros while Credit Suisse sets a target price of 21 euros when initiating hedging on the security with “overweight”.
CIE Automotive also rises strongly, specifically 1.99% in the Ibex 35 after announcing that it will pay a dividend of 0.36 euros gross per share on January 5. As the company explains to the CNMV, the payment of the dividend will be effective on January 5, 2022, in accordance with the provisions in force for depository entities, using the means that IBERCLEAR makes available.
At what levels will the Ibex 35 go today?
On a technical level, Diego Morín, an IG analyst, acknowledges that the Spanish index pierced the week’s lows yesterday as the close of the session approached, especially after again encountering resistance at 8,400 points, dragged down by sales in the companies with the greatest weight of the selective. Nevertheless, the reassuring message from the Fed could throw the Ibex into resistance zones and thus break the short-term bearish guideline. However, “the supply continues to be strong around the highs of the week, nullifying any attempt by buyers to move away from the lows, which could force the Spanish index to test again the lows of the week, which are they are already around 8,268 points “.
Finally, yesIf demand becomes “strong” above 8425 points, it could cause a rebound towards a first important level, which is located around 8500 points, with the possibility of continuing towards 8,580 points if purchases exceed these levels with capacity, therefore, we will have to monitor the volumes developed around 8,350 points.
At continuous market, increases of more than 5.4% for Berkeley Energia, 5.24% for Codere and 5.20% for Audax, which contrast with the falls suffered by Pescanova shares, which lost 2.60% or Nyesa, which lost 2.44%.
While in Europe, the increases continue right now: the DAX rose 1.63%, the London FTSE 100 1.04%, the CAC 40 1.26% and the Euro Stoxx 50 1.70%.
After Powell’s words yesterday, in which he warned that the risk of inflation was more persistent than initially expected, which led him to justify the acceleration of the rate of tapering to 30,000 million dollars a month with up to three rate hikes in 2022 , today it is the turn of the ECB. Although no changes in interest rates are expected, the market awaits Christine Lagarde’s words at a time when inflation is peaking in many economies in the Euro Zone and with the omicron variant generating new restrictions on the mobility, which could impact your economic forecasts.
In all probability the European Central Bank will take a new step in reducing stimuli, while committing to continue supporting the financial system next year, standing firm in its view that the alarming inflation will come down on its own.
From the macro side, business activity in the euro zone slows down in the last month of 2021. This is shown by the Advance Readings of PMI Indices Released Today in the region and its major economies. In the Eurozone as a whole, the composite PMI stood at 53.4 points, below that anticipated by experts (54) and also lower than the final figure for November (55.4). It is also the lowest level in nine months. In Germany, the economy has stagnated for the first time in a year and a half; its composite PMI stood at 50 points in December, but the tertiary sector contracted (German services PMI: 48.4). The positive side comes from factories: although the Eurozone manufacturing PMI has also fallen from its reading in November, from 58.4 to 58, it has fallen less than expected by the consensus of analysts.
Mixed sign in Asia despite rises on Wall Street
Mixed sign today in the main Asian indices. The Nikkei rose 2.1%, Hong Kong’s Hang Seng fell 0.4% and the Shanghai Composite gained 0.5%. In Japan, Exports accelerated in November as supply constraints from the country’s large automakers eased slightly, although imports reached a record due to rising material costs, which could hurt household consumption
As to Wall Street, the market ended yesterday in the green. The closings of the S&P 500 (1.6%), Nasdaq (2.1%) and Dow Jones (1.08%) stand out. And the fact is that the macro and rate scenario proposed yesterday by the Fed: economic growth in 2022 of 4% and inflation of 2.7% with official rates that will not reach 1% at the end of the year-, “continues to be positive for equities, being this asset the only investment alternative that currently offers attractive potential returns ”, acknowledge Link Securities analysts.
And it is that, after the decision of the FED yesterday and waiting for the European central banks, In fixed income, few variations are observed in its profitability at the beginning of the session. Thus, in the Eurozone, the IRR of the Spanish and German 10-year bonds rose 0.1 bp to 0.350% and -0.359%, respectively, while that of the Italian 10-year bond fell 0.4 bp to 0.915 % In the US, the 10-year Treasury yield stands at 1.451% (-0.5 bp).
Oil prices rise as implicit demand for oil by American consumers hit a record in the world’s top oil consumer, even as the omicron variant of the coronavirus threatens to reduce oil consumption globally. The future on the West Texas Barrel is recorded by 1.21%, up to 71.75 dollars while the Brent climbs slightly more than one percentage point, over 74.68 dollars.
In the currency market, the Euro climbs positions against the dollar, up to 1.1305 units while the Bitcoin advances almost 2% and settles on the 48,910 dollars.