Ibex wrapped up the latest session of the 35-week period with a modest 0.6% gain, pushing the index past the 9,600 mark. A consensus was reached on an interest rate increase to be carried out by the European Central Bank (ECB) on Thursday, coinciding with expectations about the next move from the United States Federal Reserve (Fed) in the coming week.
In another notable turn, the market rally brought the Ibex to a high of 9,606 on a day marked by significant developments. From the outset in Santiago de Compostela, statements were issued about the informal meeting of the European Union Ministers of Economy and Finance, known as Ecofin, which is set to involve officials from 60 countries across the EU and Latin American and Caribbean regions.
Meanwhile, the Eurogroup is scheduled to convene this Friday in Santiago, with European Central Bank (ECB) president Christine Lagarde in attendance. Lagarde is expected to address the press on the same day, following yesterday’s decision to raise rates to 4.50%. That decision contributed to the Ibex ending at 9,549 and sent the euro to its lowest level against the dollar since last March.
The ECB’s tenth consecutive rate hike this Thursday does not signal a complete pause in the ongoing consolidation. Lagarde did not confirm whether the monetary peak has been reached, leaving room for potential further increases.
Beyond Ecofin and the Eurogroup agenda, investors are eyeing a steady stream of macroeconomic data released this Friday. Key releases include the CPI readings from France and Italy, the eurozone trade balance, and US industrial production figures.
Following a positive close on Wall Street the previous day, European stock markets opened higher, with Paris and Frankfurt each up more than 0.9%, London up 0.77%, and Milan ahead by about 0.6%.
Among the Ibex 35 components, the biggest early movers were Amadeus up 1.52%, Aena up 1.24%, IAG up 1.18%, Acerinox up 1.04%, and Cellnex up 0.83%. A handful of shares traded lower at the opening, including Solaria down 0.88%, Acciona down 0.27%, and Bankinter down 0.12%.
Oil prices continued their ascent at the opening, reaching yearly highs. Brent crude, the benchmark for Europe, rose 0.6% to $94.30 per barrel, while Texas Intermediate (WTI) gained 0.6% to $90.78.
In the currency markets, the euro inched higher, trading at about 1.0661 against the dollar. In Spain’s government bond market, the yield on the 10-year Spanish bond increased to roughly 3.655%. [ECB] [EU_Fed] [Ecofin] [Eurogroup]