The Ibex 35 deflates and moves away from 8,000; Solaria the most punished

The IBEX 35 rose 0.22% at the opening to reach 8,016 points, but little by little it is losing steam and in the mid-session it fell 0.32% to 7,973 points. Solaria leads the falls, with a subtraction of 2.68% at 15.6150 euros. It is followed by Acerinox, which drops 1.93%, and IAG (Iberia), which loses 1.36%. In green, the biggest increases are for Cellnex, 09.4%, BBVA, which rises 0.80%, and Naturgy (Natural Gas), which registers 0.31%.

As for the analysts’ recommendations, bad news for Iberdrola, which sees Morgan Stanley experts cut its target price from 12 to 11 euros, with the board going from ‘overweight’ to ‘same as the market’.

Also cut for another of the Ibex 35 heavyweights, Banco Santander, with RBC analysts placing the target price at 3.1 euros, compared to 3.2 euros previously.

In the Continuous Market, the season of quarterly results advances with the accounts of Oryzon Genomics. The company recorded net losses of 1.93 million euros during the first nine months of this year, 26% less compared to the ‘red numbers’ of the same period of the previous year, as a result of a reduction in operating costs.

As reported this Thursday by the company to the National Securities Market Commission (CNMV), the income related to work carried out for its own fixed assets at the end of the third quarter of 2022 amounted to 11.3 million euros, above 7 .7 million euros a year earlier.

The pulse of the week is again dominated by central banks. In today’s session, already at the close in Europe, the announcements of the Federal Reserve will finally be known. The market is taking another interest rate hike of 75 basis points for granted, but investors will be attentive to any details in the statement and the subsequent press conference by Jerome Powell to glimpse if in the future the institution lifts its foot from the accelerator.

“We expect a quiet session, with many investors staying out of the marketwaiting to know what the Fed “says and does” today”, says JJuan J. Fdez-Figares, director of the Analysis Department of Link Securities. However, “we do not rule out that, as the day progresses, sales will prevail, with some investors, the most short-term, taking advantage of the recent rises in many values ​​to realize some capital gains.”

For this expert, “the risk of stock markets reacting negatively to what the FOMC ‘does and says’ outweighs the possibility of investors ‘celebrating’ the outcome of the meeting”. “Furthermore, the high level of overbought that many stocks and indices present may cause a small correction in equities in the short term if Powell is more ‘tough’ than initially expected and ‘desired’ by investors. ”.

If today is the day of the Fed, tomorrow will be the turn of the Bank of England. The institution could announce the biggest rate hike in 33 years, since 1989, also of 75 points, but at the same time it could soften the speech given the expectations of a deep recession in the islands.

European stocks and other markets

Falls have also been imposed in the rest of European markets: the DAX lost 0.11% to 13,324.05 points, the CAC 40 fell 0.19% to 6,315.94 units and the FTSE 100 lost 0 .43%. The EURO STOXX 50 fell 0.08%, while the FTSE MIB escaped falls and rose 0.16%.

In the European dawn, the Asian stock markets leaned today for the advances pending the Fed and before rumors on social media that China is considering a full reopening as early as March 2023. The rumors come as a great relief to beleaguered Chinese markets, which have been hit this year by a series of Covid-19 restrictions that have brought economic activity to a standstill.

China’s Shanghai Shenzhen CSI 300 Index rose 1.7%, while the Shanghai Composite Index added 1.5%. Meanwhile, in Japan, the Nikkei 225 fell a slight 0.06% to 27,663 points.

Oil prices jumped more than 1% on Wednesday morning after industry data showed a surprise drop in US crude inventories, suggesting demand is holding up despite strong Interest rate hikes slow global growth.

Benchmark Brent oil futures in Europe are trading almost flat at $94.67, the same as WTI, in this case at $88.39 a barrel.

Both benchmarks rose around 2% in yesterday’s session on US dollar weakness and the aforementioned rumors about China, which could boost demand in the world’s second largest oil consumer.

In the fixed income markets, the Spanish risk premium stands at 108.95 points, with the Spanish ten-year debt bond offering a return of 3.23%, for the 2.14% paid by the German bund at the same term. Across the Atlantic, the benchmark US bond awaits the Fed with a yield of 4.05%.

The euro rises 0.29% against the dollar to an exchange rate of 0.9903 dollars for each community currency.


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