Sales continue in the debt market and the interest rate on the ten-year bond remains above 2%, the highest since 2015
European stock markets rebound after a severely bearish start to the week, with investors exercising extreme caution in anticipation of the important two-day meeting of the US Federal Reserve (Fed) that begins this Tuesday.
The Ibex-35 recovers 0.9% and 8,500 points thanks to the early push of values linked to the tourism sector, such as IAG or Amadeus, which advanced more than 2% in the first stages of trading.
Within the national trading floor, analysts' recommendations on the banking sector regain prominence, once the entities' quarterly income statements have been presented. Today it is BBVA's turn to receive the approval of Credit Suisse analysts, who have improved their valuation of the company with a target price of 5.6 euros, compared to the 4.8 that the bank is currently around.
On the other hand, JP Morgan has cut the target price of Telefónica from 4.30 to 4.10 euros per share, slightly below the 4.60 euros at which the operator is listed.
Money is pouring back into the equity markets as bond prices decline across the board, with investors selling off debt and thus driving yields (which move inversely with price) back up. .
The movement is so forceful that the interest rate on the ten-year Spanish bond is already above 2%, the highest since September 2015, with the risk premium at 105 basis points.
A reaction that occurs at the gates of the Fed deciding a new rise in official interest rates in the fight against inflation, predictably 50 basis points, which would place them between 0.75% and 1 %.
“The Federal Reserve, like the ECB, has been lagging on the debt curve for several months. In this sense, it is now clear to him that the fight against inflation is his first and, of course, most important task”, indicates Pedro del Pozo, director of financial investments at Mutualidad de la Abogacía.
In the raw materials market, the price of oil is slightly down, with West Texas still above 104 dollars, while a barrel of Brent, a benchmark in Europe, is trading at 107 dollars.