News from the financial floor paints a week of calibrated shifts. The Dow-like benchmark slipped modestly as markets opened lower this Thursday, trading around 9,035 points after the Federal Reserve in Washington signaled a continued path of policy tightening. The Fed raised its target range by a quarter point, bringing the rate to 5.00% to 5.25%, a move that signals ongoing vigilance against inflation while maintaining caution for growth and employment in North America.
Global data streamed in as investors tuned into labor market signals and social program commitments. Spain reported a surprising improvement in April, with unemployment dropping sharply and Social Security registrations rising to their strongest April on record. The numbers suggest a resilient labor market, even amid broader European inflation pressures that have persisted into spring. Market watchers noted that these domestic indications could influence central bank expectations on both sides of the Atlantic, particularly as the ECB weighs a rate increase in response to Eurozone inflation hovering around the 7% mark in April.
The Fed sustains its inflation-fighting trajectory with a tenth consecutive quarter-point step
As the session began, traders watched the European response to a mixed earnings landscape. In Madrid, notable moves included Repsol climbing while some financials remained modestly positive or flat. The day’s declines were led by several large utilities and industrials that temper risk appetite. The action underscores how global equities can react to shifts in U.S. policy and European economic releases in tandem, shaping risk sentiment across currencies and commodities.
In corporate results, ArcelorMittal released its first-quarter figures, reporting a net attributable profit of about $1.1 billion, a significant year-over-year drop from the previous year when the Ukrainian conflict and commodity markets created unusual volatility. This earnings profile helped temper expectations for steelmakers across Europe and reinforced a broader narrative: the first quarter results reflected the tug-of-war between higher financing costs, input prices, and demand trends from manufacturing sectors. Analysts noted that these dynamics matter for global price signals and investor positioning as summer approaches.
European markets opened with a cautious tone, with regional indices showing modest declines. Milan, Paris, London, and Frankfurt all traded in negative territory as investors weighed macroeconomic data against corporate earnings and the monetary policy outlook. The mood matched the early momentum seen in energy markets, where Brent crude held above the $70 per barrel mark while U.S. benchmarks edged higher, reflecting ongoing supply-rebalance expectations and geopolitical considerations affecting energy trade.
In the foreign exchange arena, the euro hovered around the mid-1.10s per dollar, signaling modest strength against the greenback after a period of volatility. Spain’s risk premium in the bond market remained elevated, reflecting ongoing concerns about fiscal policy and growth momentum in southern Europe. The yield on benchmark ten-year government debt posted a level consistent with cautious optimism among fixed-income investors, who continue to balance inflation fears with the need for stable financing conditions across Europe and North America.