The monetary organization publishes this Wednesday the minutes of its last meeting, with the expectation of a higher rate of increases in interest rates
The Spanish stock market puts on the brakes after three days of consecutive increases, in which the Ibex-35 had managed to regain 8,600 points. The selective yields slightly in the first stages of trading to 8,618 points, also pressured by last night’s falls on Wall Street.
Investors will wait for the minutes of the last meeting of the Federal Reserve (Fed) on Wednesday to make clearer decisions, at a time when rate hikes seem to be the only option for central banks to combat inflation.
The document, which is always an important reference for the markets, takes on special relevance with the latest messages released by the body led by Jerome Powell, pointing to a greater aggressiveness of its monetary policy in the current scenario.
Rate hike and balance withdrawal are the two tools that the institution handles for the coming months. The question now is how fast will you use them? The market discounts that the next rise in interest rates will already be 50 basis points.
In debt markets, investors react by selling bonds, which pushes down the price of securities and pushes their yields back up. The interest of the ten-year US bond (treasury) is already trading above 2.60%, accelerating the concern about the inversion of the curve that is taking place with respect to short-term bonds. A movement that usually anticipates the possibility of an economic recession.
Although analysts rule out this scenario for the time being, the truth is that the fact that, for example, the interest rate on the three-year bond is quoted at 2.75% (above the reference to a decade) does indicate the fear of a sharp slowdown in the pace of growth.
With the dollar appreciating against the euro, in the commodity market, the price of oil (which is traded in greenbacks) remains stable with slight increases that leave the barrel of Brent, a reference in Europe, at 107 dollars. For its part, the American West Texas remains above 102 dollars.
Within the sector, the market will closely follow the evolution of listed companies such as Repsol, which this Wednesday receives the support of Jefferies analysts, who improve their advice on the value to ‘buy’ with a target price of 15 euros per share, from the previous 12.3 euros.
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