The red numbers have been imposed on the European Stock Exchanges due to the extension of the omicron variant and pending the meetings of the central banks. The Ibex, against the current, has cut a four-day losing streak and added 0.67% to 8,378.50 points at the close. ArcelorMittal and Telefónica have stood out in the rises.
Day of falls in Europe in the last session before beginning to know the decisions of the main central banks of the world. Until then, the omicron threat has re-emerged as the main destabilizing factor in financial markets. Since the first alerts about the new variant of Covid emerged, there have been lurches depending on the degree of health, economic and financial threat that the omicron variant could pose. If on previous dates investors downplayed its possible impact given the signs of little seriousness in its symptoms, the news from European countries such as the United Kingdom and Denmark have once again increased the level of alarm.
Boris Johnson's government has been forced to announce new additional measures to try to stop its rapid contagion among the population, within a package of initiatives that may aggravate the division in his party and increase the level of political uncertainty in the process. country. The shadow of greater restrictions in other European countries has once again cooled the spirits of investors, worried about the possible coincidence of an economic brake with the turn towards more restrictive monetary policies. Central banks such as the Federal Reserve and the Bank of England seem determined to lead this monetary adjustment, hence the expectation generated by their meetings. That of the Fed has begun today, although it will not be until late tomorrow when the outcome is known. With little room for respite, on Thursday it will be the turn of the European Central Bank and the Bank of England.
The first references of the day, those from Asia, acquired a bearish sign also alerted by the expansion of the Covid. The Tokyo Nikkei has lost 0.73%, and in China the CSI 300 index has closed with cuts of 0.67% amid additional uncertainty about the impact on the supply chain generated by the quarantine of tens of thousands of citizens decreed in one of the key provinces in the manufactures of the Asian giant, Zhejiang.
Wall Street already closed yesterday with notable falls, close to one percentage point, and in today's session, the first of the two Fed meetings, the red numbers are once again imposed, especially in the S&P and Nasdaq indices.
The Spanish stock market has stood out with increases. With its rebound of 0.67% today, to 8,378.50 points, it has cut a streak of four consecutive falls that has subtracted more than 200 points from the Spanish selective index. In the absence of just over two weeks for the end of the year, the Ibex barely rose 3.8% in the year.
Investors have not relented in their commitment to cyclical stocks, and the steel companies Acerinox (+2.57%) and especially ArcelorMittal (+7.71%) have once again stood out in the rise of the Ibex. In the case of ArcelorMittal, the announcement of the repurchase of part of its debt has counted as an additional incentive for progress.
Important values such as Inditex and especially Telefónica have underpinned the improvement of the Ibex. Inditex shares have rebounded 2.48%, with investors awaiting the results to be published tomorrow and the repercussions of omicron on possible additional restrictions. Telefónica has risen 4.41% due to the agreement to acquire the television rights to football in Spain.
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A greater brake has registered the prices of the 'utilities'. Stocks such as Red Eléctrica (-3.13%), Enagás (-0.48%), Endesa (-0.99%), Iberdrola (-0.55%) and Naturgy (-0.04%) face misgivings the advances of monetary exchanges foreseen for the next days.
The rest of the European stock markets ended the session with declines, with the biggest falls for the German Dax (-1.08%) and the French Cac (-0.69%), lagging behind today. The British Ftse fell 0.18% and the Italian Mib closed practically flat (+0.02%). The initial hint of a bounce was erased by the renewed alerts generated by the rapid spread of omicron. Countries like the United Kingdom have already decided to increase the degree of restrictions to try to curb their expansion, generating an additional factor of uncertainty just before the wave of decisions by central banks. The economic impact is taking shape, and the IFO institute has lowered Germany's growth forecasts for 2022 due to the effects of the fourth wave of Covid.
Corporate movements have once again helped revitalize prices. The rumors of previous days have taken shape, and the pharmaceutical company Vifor Pharma has shot up 12.6% upon confirmation that it has accepted the purchase offer of 11,700 million dollars launched by the Australian CSL. The results of Ceconomy, owner of chains such as Media Markt, have been a shock to its price, bringing its biggest rise in nearly a year. The German company has shot up 8.3% on the stock market. An opposite behavior has been recorded by the Software AG share price, with a 13.5% drop. Investor support from Silver Lake has cooled speculation of a possible takeover bid for the company.
Equity investors keep an eye on the fixed income market, one of the most sensitive to a change in monetary policies. The interest of the Spanish bond rebounds above +0.30%. The negative interest rates of the German bund are close to -0.35%, and in the US the yield of the ten-year bond is on the verge of +1.45%.
The oil market surrenders to the economic doubts generated by omicron. The barrel of Brent falls to 72 dollars, and the West Texas-type barrel, a benchmark in the US, falls below 70 dollars.
The previous portfolio adjustments to the central banks consolidate the firmness of the dollar. The euro repeats below 1.13 dollars, while the pound, especially sensitive to the impact of the omicron spread by the United Kingdom, maintains 1.32 dollars.
The forcefulness shown by the central banks in their fight against inflation will be key in the prices of gold and bitcoin. Until then, the precious metal is moving away from $1,800 an ounce. In the case of bitcoin, its price remains below $47,000.See previous daysThe Ibex chains four falls while waiting for the central banksThe Ibex chains three sessions of falls and reduces the weekly gain to 1.4%The Ibex corrects and loses 8,500 points with the ballast of Inditex and Santander