The Spanish stock market was in red for a full week yesterday, when it lost 0.2% to close the session at 8,724 and accumulated losses of 2.3% over the past five days. The market’s future was determined by data on employment in the US. There was a slight slowdown of job creation in May which resulted in 390,000 fewer jobs than April.
This figure was slightly lower than anticipated and the unemployment rate remained at 3.6%, which is higher than forecasts of a 3.5% drop. Investors are starting to doubt the Fed’s ability to slow down the pace of future interest rate increases.
Lael Brainard, the agency’s vice president, stated that controlling inflation was a priority above all other variables, so it is “improbable” that the agency will cut off its current cycle.
Investors sell bonds again against this backdrop, which causes prices to fall and yields (which move in the opposite direction) to rise.
The interest rate for the US 10-year bond is 2.9%. The return on the German bond is at 1.3% while the Spanish yield exceeds 2.4% in Europe.
Acerinox was the most prominent player in the Ibex-35 red numbers. It lost more than 3 percent after Aperam confirmed the merger talks.
CIE Automotive (-1.90%), Solaria, (-1.67%), Amadeus, and banks also stood out in the lower portion of the table with losses of approximately 1% for Sabadell and Bankinter.
Repsol and Merlin Properties led the increase with more than 1.3% advances at the close.
Investors also monitor the development of the oil market after volatility following learning that OPEC had agreed to increase its production and compensate for Russian exports being closed.
Brent crude oil, which is a standard in Europe, has remained above 119 dollars while US West Texas rises more than 1 percent to also surpass that level.
