Madrid, Sep 22 (EFE).- The Spanish stock market fell 1.18% after opening this Thursday and lost 7,800 points, after the US Federal Reserve (Fed) raised 75 basis points on interest rates, anticipating that the price of money will continue to rise, which the market fears could hurt the economy.
In the first minutes of trading, the IBEX 35, the main Spanish selective, leaves that 1.18%, up to 7,779.9 points. With this decrease, the accumulated losses in the year reach 10.72%.
The Spanish market is trading with heavy losses after the US central bank announced a new rate hike the day before, to place them in a range of between 3 and 3.25%, the highest level in the last 14 years.
In addition, he confirmed that he will continue to raise rates until inflation is controlled, and estimates that the price of money will reach 4.4% by the end of 2022 (above what was forecast in June), and 4.6% in 2023.
Following the decision of the US central bank, in the debt market, the yield on bonds rises; the ten-year German reaches 1.91%, and the Spanish, 3.05%.
In the foreign exchange market, the dollar strengthens again. Thus, the euro falls and changes to 0.982 dollars, although, at dawn, it has come down to 0.9809 dollars.
Once the Fed’s agreements are known, the market will be watching the Bank of England rate meeting today.
This morning, the Bank of Japan kept rates unchanged, despite new lows in the yen.
At the macro level, the focus will be on weekly US unemployment and consumer confidence in the eurozone.
Likewise, geopolitical tensions remain after Russian President Vladimir Putin announced yesterday a “partial mobilization” of his troops in Ukraine and launched nuclear threats.
After that, Brent rose strongly in the previous session, although after the Fed’s announcements, it fell again and closed below 90 dollars.
At this time it is trading at that level, after adding a slight 0.16%.
In this context, Wall Street closed yesterday with sharp falls, a trend that has moved this morning to Asia, and also to Europe.
Frankfurt stands out by falling 1.72%; Paris, 1.56%; Milan, 1.53%, and London, 0.92%.
In the Spanish market, only two values are trading on the rise: Enagás adds 0.41%, and Siemens Gamesa, 0.06%.
Solaria, for its part, is the one that leaves the most, 3.74%, followed by IAG, 2.82%, and Grifols, 2.43%.
All the big values of the selective register losses: BBVA yields 1.80%; Santander, 1.70%; Inditex, 1.31%; Iberdrola, 0.95%; Repsol, 0.88%, and Telefónica, 0.33%.
(c) EFE Agency