The European stock market session from more to less, Wednesday’s inflationary pressures were reaffirmed by the Federal Reserve (Fed) and other institutions like the European Central Bank(ECB), who are now required to implement the plan for a rate hike to stop the price spiral.
The Ibex-35’s slight truce, which allowed it to surpass 8,900 points in the morning, turned into a noteworthy 1.2% for the selective at close. Its graph now stands at 8,747. A more moderate close to the national stock exchange was impossible due to the downward turn of Wall Street and the fall of large stocks like Telefonica, Iberdrola or BBVA.
With a decline of 2.6%, the operator was the most bearish of the session. It discounted the preferential subscription rights of the capital rise for the payment flexible dividend of 0.148 euros per share.
After weeks of being in quarantine due to the coronavirus, optimism about the economic reopening of Shanghai was not much use. Investors continue to feel discouraged by the inequalities between growth and inflation. They quoted new sources for PMI data from different regions on Wednesday.
China’s ratio was 48.1 points in May. This is below the 50 point barrier, which divides growth from contraction. The data in the euro area improved to 54.6 points from the initial reading. One point in favor of a more aggressive rate increase by the ECB.
Markets also look sceptical at oil futures, which, after strong fluctuations due to the European embargo against Russian crude, continue to rise to above 116 USD in the case Brent-type barrels, which are a reference in Europe. The American West Texas is at 115.78 USD.
