The Ibex closes in free fall waiting for the rate hike in the United States

Luis Garcia LopezMadrid Updated: 06/14/2022 18:51h
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The fall of the Ibex continues for the fourth consecutive day, reaching 8,000 points during the day to stand at 8,066.4 integers with a drop of 1.43% at the close of the market, its lowest level since March 10 and with most values ​​negative. The risk premium has reached 134 basic points, with the interest required on the ten-year bond at 3.106%.

Despite the positive opening,
European markets fell again
by the uncertainty regarding the caliber of the rise in interest rates by the United States Federal Reserve (Fed). One more factor to add to the concern after the announcement by the European Central Bank last week about the rate hike and waiting for the Bank of England to announce its position this Thursday.

Elsewhere, the Bank of England could be dragged down by inflation data and the Fed hike as unemployment rises and wages slow in the UK. The Paris stock market lost 1.20%, Frankfurt lost 0.91% and London 0.25%, while Milan lost 0.32%

The Fed's decision on the hike, which can range between 50 and even 100 basis points, will greatly affect market confidence. The decision will be known tomorrow after the second phase of the meeting, which will take place this Wednesday.

Friday's US inflation report suggests that the current pace of monetary policy tightening could continue for a while yet. Inflation rose again to 8.6% in May (above the 8.3% market consensus and its highest level since December 1981). The pace of prices also remains strong, as the 1% monthly increase has only been exceeded three times this century.

In Spain, the Public Treasury has placed this Tuesday 1,795.6 million euros in letters at three and nine months, below the expected average range, and has done so by charging investors less at three months and abandoning the negative return at nine months.

The price of a barrel of Brent crude oil, a reference for Europe, stood at 124.04 dollars, with an increase of 1.46%, while the barrel of WTI oil, a reference for the US, rose by 1, 58%, to $122.48.

The price of the euro against the dollar stood at 1.0415 'greenbacks', acting as a "safe haven" in an environment of "growing risk aversion" as the inflation ceiling had not yet been reached in Europe or the United States , putting pressure on central banks and economic growth, according to Renta 4 experts.

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