The Ibex-35 rises 0.5% to 8,200 points, with investors very aware of the Fed meeting
European stock markets are trying to recover some of the ground lost in recent days. The selloff in the main equity and fixed income markets shows that, despite this rebound attempt, the bottom of the market remains highly uncertain.
“We don’t expect the increases to be relevant, as many investors will wait for what the Fed does and says on Wednesday before adding risky asset positions,” analysts at Link Securities say.
At the moment, the Ibex-35 xxx after the new blow suffered yesterday, given the conviction of investors that the centrals, if they want to end up controlling high inflation, will be forced to raise their reference interest rates to levels in which they will finish to “destroy demand,” according to experts. On Wall Street, and pending the Fed meeting, the S&P 500 entered what is known as a “bear market” YESTERDAY, having lost more than 20% since its last maximum, reached on January 3.
Given the attempt to recover from the European stock markets, bonds continue to reflect the tension with which the market arrives at this Fed meeting, the conclusions of which will be known tomorrow, Wednesday. A rate hike of 50 basis points is expected, with 75 basis points not ruled out, and there are nerves over what Jerome Powell might say about future plans.
In this context, the interest rate on the 10-year bond fell after the sharp increases these days, but still remains above 3.3%, while that of the German bond stands at 1.61%. For its part, the return on the ten-year Spanish bond shows 3%, which it far exceeded yesterday.
With the euro trading at $1.0442, oil prices are stable above Europe’s benchmark Brent rate of $122 a barrel, while US West Texas hovers around $121.