European stock markets overcome Wall Street’s Tuesday blow of Snap’s earnings forecast crashing, despite the fact that technology stocks were hit for the third time this year. Despite uncertainty still being present on the global stock market, the color green prevailed at the close. The Ibex-35 gained another 1.5% for its fourth consecutive day of gains to surpass 8,760 points.
This level allows the select to erase losses that have accumulated over the year. It was achieved thanks to the support of banks and other value-related to the cycle. Banco Sabadell was the leader in increases, with a 3.6% increase that left its share price at 0.82 euro per share. Other financial companies like CaixaBank and Bankinter rose more than 2%.
Acerinox (3.5%) and tourist companies like IAG (3.18%), Aena (2.3%) or Melia Hotels (2.2%) also joined the upward trend on the floor.
Investors took advantage of the relief in the debt markets with a noticeable slowdown in the rise bond yields (which move inversely to price) to take new positions in the stock market. The operators’ sentiment is still what has made the markets such a rollercoaster in recent weeks.
Wall Street will respond to the main reference of Thursday’s session, the minutes from the last meeting US Federal Reserve (Fed) on Thursday. This is known with European markets already closed.
These documents will provide new information about the rate at which the monetary institution intends to raise its official rates, and more importantly, the pace at which it will do so. Link Securities analysts indicate that they understand that any hint of rate increases of more than half of a point could cause tensions in the global financial markets.
Investors also pay attention to the comments made by the major businessmen, political and economic leaders at the Davos Forum. These remarks include harsh warnings about how the war in Ukraine will impact the global economy if it continues.
The price of oil continues to rise in the raw material market. A barrel of Brent type oil, which is a reference in Europe and trades at 111.5 dollars per barrel, while the Brent type oil trades at 110.5 dollars in the US West Texas.
