Ibex hits pre-COVID highs on hopes of a quick inflation remission

March 6 (Reuters) – Spain’s main stock index posted a third consecutive rise on Monday to close at its highest in more than three years, as new data fueled optimism that inflation might come down as inflation awaits appearance of the president of the central bank of the United States and the latest monthly employment data for the country.

Ahead of major events this week, January’s slump in US factory orders added to China’s modest growth target for Monday’s weekend, raising hopes that a slowing global economy will help to cool high inflation.

Peter Tuz, president of Chase Investment Counsel in Charlottesville, said “China’s economic growth guidelines are seen as anti-inflationary.”

“The rather slow growth figure has raised the belief that if the economy slows down, it’s good for the belief that inflation is coming down, which reinforces the belief that we could be approaching the end of the year.” interest rate hike cycle (by the Federal Reserve)”.

In this sense, the Fed Chairman’s appearance before the US Congress (Tuesday and Wednesday) and the country’s employment data for February (Friday) are expected, looking for signs that the central bank is succeeding in its monetary tightening campaign to control inflation at its highest level in decades.

Thus, the selective Spanish stock market Ibex-35 closed on Monday up 42.80 points, or 0.49%, to 9,507.00 points, breaking the psychological barrier of 9,500 points for the first time since more than three years, closing at its highest level. since February 21, 2020, before the outbreak of the COVID-19 pandemic in Europe.

The FTSE Eurofirst 300 index of major European stocks lost 0.09%.

In the banking sector, Santander is up 1.61%, BBVA is up 0.92%, Caixabank is up 1.25%, Sabadell is up 3.07%, Bankinter is up 1.36% and Unicaja Banco is up 1.67 %.

Among the large non-financial stocks, Telefónica scored 1.67%, Inditex advanced 0.82%, Iberdrola left 0.37%, Cellnex fell 0.83% and oil company Repsol gained 0. 95%.

(Reporting by Darío Fernández; additional reporting by Stephen Culp)