The IBEX 35, the main index of the Spanish stock market, which had traded in the green from the opening, has been stuck after the publication of the inflation data in the US, higher than expected, and has closed with a decline of 0.26%.
The selective has lost 24.4 points and closed at 9,336 points, saving the level of 9,300. So far this year, the IBEX is still up 13.45%. As for the rest of the major European stock exchanges, the performance was mixed: Frankfurt was down 0.23% and Paris 0.37%, while London was up 0.32% and Milan 0.26%.
Investors were today keeping an eye on US CPI and the minutes of the latest European Central Bank (ECB) Governing Council meeting. Yesterday, after the close of European markets, the minutes of the latest Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) had been released.
With this information on the table, the session was marked by Wall Street opening in the red, the slight rise in crude oil prices, the rebound in sovereign debt yields and the euro’s fall against the dollar.
The IBEX reached over 9,400 points during the session, but fell after Wall Street opened in the red and the US inflation figure was released.
The biggest fallers on the IBEX 35 were the steel group ArcelorMittal (-3.94%), followed by two renewable energy companies: Solaria (-3.3%) and Acciona Energía (-2.17%).
The sharpest decliners on the IBEX 35 were the pharmaceutical company Rovi (1.88%), Indra (1.48%) and Banco Sabadell (1.35%).
The IBEX 35, conditioned by US CPI
The key data of the day was US inflation, which remained at 3.7% year-on-year in September, the same as in August and one tenth of a percentage point higher than analysts expected (3.6%).
Another of the day’s highlights was the publication of the minutes of the last meeting of the Governing Council of the European Central Bank (ECB).
The minutes show that at that meeting most of the members were still concerned about the course of inflation and the impact of energy on prices.
Yesterday, after the close of European markets, the minutes of the last Federal Open Market Committee meeting were released.
According to these documents, most Fed members argued for the need for an additional rate hike before the end of the year.
In the wake of these details, sovereign bond yields rebounded on both sides of the Atlantic.
The yield on the German bond, considered the safest, has risen to 2.782%.
In the case of the benchmark Spanish ten-year bond, the yield has rebounded to 3.891%.
The yield on the US bond climbs to 4.645%.
On the foreign exchange market, the euro loses ground and trades at 1.056 dollars.
Oil prices rise slightly. Brent, Europe’s benchmark crude, is 0.7 % higher at around 86.5 dollars a barrel.
West Texas Intermediate (WTI), the US benchmark, is up 0.5 % at around 84 dollars per barrel.