MADRID, 20 May. (EUROPA PRESS) –
The Ibex 35 traded in the mid-session with an advance of 1.43% and with practically all its values in positive, which led it to trade at the level of 8,500 integers, a level at which it had not been able to close since the 4th of May, after the announcement of new monetary stimuli in China.
Renta 4 analysts point out that the rising price of the indices in Europe responds to the new monetary stimuli from China, which has announced a record reduction of 15 basic points in the reference interest rate for bank loans to more than five years, which will rise to 4.45% from 4.60%, with the aim of reactivating the Asian giant’s real estate market.
Experts point out that this drop “would help offset weak demand caused by problems in the Chinese real estate sector and the impact on confidence of the lockdowns to deal with the Covid wave, lockdowns that will continue for the time being as the appearance of of cases”.
In addition, they indicate that in today’s session there could be “more volatility” as it is a derivatives expiration session.
As for the central banks, the minutes of the European Central Bank (ECB) published yesterday showed the “increasing weight of the ‘hawks’ in the face of concerns about persistently high inflation”, which increases the probability of a rate hike in July . The doubts would be around whether the rise will be 25 or 50 basis points, they point out from Renta 4.
In this context, the Ibex 35 traded at mid-session at 8,526.4 integers, with Rovi leading the revaluations, advancing 4.95%, followed by Fluidra (2.84%), Iberdrola (2.60 %), ArcelorMittal (2.49%), CIE Automotive (2.37%), ACS (2.35%) and IAG (2.18%). On the opposite side, only Solaria (-1.94%) and Endesa (-0.15%) fell.
The rest of the European stock markets were trading with increases of 1.83% in London, 1.07% in Paris, 1.78% in Frankfurt and 1.85% in Milan.
The price of a barrel of Brent crude oil, a reference for Europe, stood at 112.47 dollars, with an increase of 0.40%, while a barrel of WTI oil, a reference for the US, fell 0. 17%, to $112.02.
Finally, the price of the euro against the dollar stood at 1.0594 ‘greenbacks’, while the Spanish risk premium stood at 110 basis points, with the interest required on the ten-year bond at 2.083%.
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