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The Ibex gives way after the re-election of Powell pending the PMI


FILE PHOTO: A Spanish flag hovers over the Madrid Stock Exchange, Spain, June 1, 2016. REUTERS / Juan Medina

Nov 23 (Reuters) – The main index of the Spanish stock market opened lower on Tuesday in line with the main European markets, following in the wake of the Asian stock markets and Wall Street after the re-election of Jerome Powell as Fed chairman, the day the revealing PMI indices for the eurozone and the United States will be released.

The US president renewed Powell for a second term at the head of the Federal Reserve, which reinforced the markets’ bets for an early relaxation of his stimuli and for anticipated rate hikes as early as 2022.

“We hope that the withdrawal of QE (quantitative easing), which began this November, will be completed in mid-2022, (…) unless the persistence of very high inflation levels forces the withdrawal of these stimuli more quickly, “Renta 4 analysts said after reelection in a note to clients.

“Once the debt purchases are concluded, the key to the ‘timing’ of the initiation of rate hikes will be in the labor market and in meeting the goal of inclusive full employment, although Powell’s re-election (…) is accelerating expectations of market rate hikes, which discounts the first in June 2022, with the possibility of a second in September and a third in December 2022 “.

On the other hand, crude prices fell after reports that OPEC + could adjust its plans to increase oil production if large consuming countries release crude from their reserves or if the coronavirus pandemic slows demand. added to the prospect of the US releasing an oil loan from its emergency reserves, a source said Tuesday.

At 08:05 GMT, the price of a barrel of Brent crude was down 0.53%.

During the session, the markets will be attentive to the advance data for November of the PMI of the euro area and the US, which will offer a reliable sample of the state of form of the economic recovery from the pandemic.

Thus, at 08:05 GMT on Tuesday, the selective Spanish stock exchange Ibex-35 fell 62.00 points, or 0.70%, to 8,759.30 points, while the index of large European stocks FTSE Eurofirst 300 fell 0.77%.

After the increases of the last closing with the re-election of Powell as head of the Fed, the banking sector began to register losses: Santander lost 0.61%, BBVA fell 1.62%, Caixabank lost 0.25%, Sabadell it fell 0.67%, and Bankinter fell 0.52%.

Among the values ​​that fell the most, Telefónica stood out, which collected the profits of its biggest rise in a year the previous session and fell by 3.20%, the day after KKR’s offer for Telecom Italia triggered the shares of European telecoms , to which was added on Tuesday a cut in Berenberg’s recommendation to “hold.”

Among the other large non-financial securities, Inditex lost 0.19%, Iberdrola fell 0.65%, Cellnex fell 0.65% and the oil company Repsol rose 0.02%.

Above were Colonial real estate, which scored 1.36%, and its competitor Merlin, which appreciated 0.53%, after SocGen raised the recommendations of both to “buy” in an improvement of its perspectives for the whole of the sector.

(Information from Darío Fernández, edited by Jose Muñoz)

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