The main Spanish stock index received favorably on Tuesday better-than-expected consumer price data from the United States, which will serve as a prelude to news from the Federal Reserve on monetary matters.
The US CPI barely rose on a monthly basis in November amid declines in the cost of gasoline and used cars, leading to the smallest annual rise in inflation in almost a year, which could provide arguments for the Fed to start reducing the size of its interest rate hikes on Wednesday.
The price news accentuated the rise of the Ibex-35 at times, although in the last section of the day the advance moderated due to the uncertainty about the messages from the Fed, of which an increase of 50 basis points (bp) is expected. in the cost of loans, after applying increases of 75 bp in the four previous sessions with the aim of fighting inflation.
Beyond the rate decision, attention will be focused on the economic outlook —with special interest in any comments on the threat of recession— and on the update provided by the different members of the Fed on their estimates for interest rates in the next few months.
The monetary action will not end on Friday, as the European Central Bank and the Bank of England will make their rate decisions on Thursday, with 50bp hikes expected in both cases according to Reuters polls. For the rest, investors are still waiting for the relaxation of restrictions in China, in an environment of uncertainty about the increase in COVID-19 cases.
In this context, the selective Spanish stock market Ibex-35 closed with an increase of 68.80 points on Tuesday, 0.83%, up to 8,327.70 points, while the index of large European values FTSE Eurofirst 300 rose 1. 09%
In the banking sector, Santander rose 0.90%, BBVA recorded 1.22%, Caixabank advanced 0.15%, Sabadell fell 0.61%, and Bankinter rose 0.41%.
Among the large non-financial values, Telefónica fell 0.60%, Inditex advanced 2.15%, Iberdrola closed flat, Cellnex gained 1.87% and the oil company Repsol rose 1.06%.
PharmaMar lost 0.76%, after the Ibex-35 Technical Advisory Committee announced its exclusion from the main Spanish stock index as of December 19 at the close of business on Monday, being replaced by Logista.