The IBEX 35 awaits the Fed meeting on a public holiday
The IBEX 35 opens on Wednesday 1 November, a public holiday in Spain on All Saints’ Day, a session in which the markets will be awaiting the US Federal Reserve’s meeting on whether to maintain or raise interest rates.
According to the calendar established by Bolsas y Mercados Españoles (BME) for this year, the IBEX 35 will trade on Wednesday 1 November, despite being a public holiday in Spain, as well as on the following holidays: 9 November, the feast of La Almudena in Madrid, and 6 and 8 December, Constitution Day and the Immaculate Conception, respectively.
The last holiday on which the Spanish stock market was also open for trading was 12 October, Spain’s National Day.
IBEX 35, on All Saints Day, awaits the Fed
Precisely this Wednesday, 1 November, the US central bank holds a new meeting at which it will decide on its monetary policy after agreeing at the last meeting held on 20 September to keep rates in the range of 5.25-5.50%.
In any case, the Fed’s decision on whether to maintain or raise rates will not affect the market until Thursday 2, as the result will be known at 20:30 when European stock markets are already closed.
This year, BME has decided that the Spanish stock and debt markets will not trade on five public holidays, two more than the three days it did not open in 2022.
BME, the operator of the equity, fixed income and derivatives markets in Spain, considered 7 April, Good Friday, 10 April, Easter Monday, 1 May, Labour Day, 25 December, Christmas Day, and Tuesday 26 December as non-working days for market operations.
Between now and the end of the year, the Spanish stock market will only be closed on 25 and 26 December.
According to this calendar, between now and the end of the year, the stock exchange will only be closed on 25 and 26 December.
Since 1998, the stock exchanges of Madrid, Barcelona, Bilbao and Valencia have maintained a unified calendar of sessions with Europe, so that there are no distortions in the prices of securities and arbitrage between the different stock exchanges is avoided as far as possible.
In 2005, the Spanish stock exchange progressively reduced its public holidays to coincide with the main European markets, which closed on fewer days than the Spanish one.
Until a year earlier, the Spanish stock exchange had eleven non-working days, but from 2005 onwards it was progressively reduced to converge with the main stock exchanges in the euro area, which had fewer public holidays than Spain.
Other points of interest in the IBEX 35 week
On Tuesday 31 the evolution of prices and advance GDP in the euro area will be published, as well as various macroeconomic references such as the CPI and PPI in France, inflation in Italy and Portugal and the current account in Spain, which will show the degree of dynamism or slowdown and the outlook for the monetary union.
The week will end with the publication of labour market indicators.
On Thursday, manufacturing PMI will be published in Spain, Italy and France, as well as the unemployment rate in Germany, while in Spain there will be auctions of ten-year government bonds, three and five-year bonds and car registrations.
Unemployment change data will be released in Spain and Italy on Friday 3 November, when Germany’s exports and imports and its trade balance will also be published, as well as industrial production in France and Spain.
In Spain, business results will continue to be released, with BBVA, Unicaja, Aena, Edesa, Indra, Ferrovial and Acerinox all set to publish their results.
Companies such as HSBC, BP, Lufthansa, Novo Nordisk, Zalando, ING and BMW will also publish their third quarter accounts.
Redbook index
In the US, Tuesday 31 will bring the Redbook Retail Sales Index and the Home Price Index, as well as The Conference Board’s October consumer confidence, the Dallas Fed’s service sector earnings and the Dallas Fed’s service sector forecast for this month.
On the same day as the Fed meeting on Wednesday, which will be released at 8:30pm, the JOLT job openings survey and oil imports will be released.
The week will end in the US with the Challegner report on job cuts, industrial orders excluding transportation, natural gas stocks and the 4 week debt and 8 week bond auctions.
On the corporate front, Pfizer, PayPal, Qualcomm, Apple, Moderna or Moderna will release their third half results.
In the Asia-Pacific region, China’s manufacturing PMI will be released on Tuesday, while the Caixin will be released the following day, Wednesday.
Japanese interest rates
At the same time, the Bank of Japan will decide on Tuesday whether to maintain ultra-loose monetary policy or raise interest rates instead.
Japan’s household confidence and housing starts for September will also be released on the same day.
On Thursday, foreign investment in Japanese equities and foreign bond purchases will be published and a ten-year debt auction will be held, while on Friday Japan will celebrate the Culture Day holiday.
