Oct 27 (Reuters) – The Ibex-35, the main index of the Spanish stock market, closed in the red on Wednesday, dragged down by bank values and market fears of a slowdown in the global economic recovery.
Faced with growing concern about an early tightening of monetary policy by central banks, the yield curves for world public debt have stagnated again.
The yield on Germany’s 10-year government bond, a benchmark for the bloc, fell on the day to its lowest level in more than a week, heading for its biggest daily loss since late February.
For its part, a key market indicator of long-term inflation expectations in the euro zone – the five-year equilibrium index – briefly reached a seven-year high at 2.0951%, and continued to hold for above the 2% target of the European Central Bank.
“With infections rising, the slowdown in PMIs … it may not be best to have a very narrow focus on inflation … or to insist on raising rates, when the factors that have driven rising inflation is related to supply and not demand, “said Jens Peter Sorensen, chief analyst at Danske Bank.
“I guess the markets are starting to recognize it,” he added.
On Thursday the ECB meeting takes place, a decisive appointment in this context of inflationary fear.
“The ECB is not going to raise rates next year,” said Chris Iggo, director of basic investments at AXA Investment Managers. “If they continue to believe that, then they have to say it quite strongly and that should bring some relief,”
In this context, the selective Spanish stock exchange Ibex-35 closed with a fall of 29.30 points on Wednesday, 0.33%, to 8,972.30 points, while the index of large European stocks FTSE Eurofirst 300 lost 0, 39%.
Santander bank closed the bottom of the index after publishing its third quarter results, with a loss of 2.85%.
Caixabank followed with a fall of 2.04%, while the banking sector as a whole closed with losses, with the exception of Bankinter, which rose slightly by 0.06%.
BBVA fell 1.20% and Sabadell fell 1.83%.
At the top of the table, Red Eléctrica positioned itself after publishing its results as of September, with gains of 2.35%.
Among the large non-financial stocks, Telefónica registered 0.01%, Inditex lost 0.23%, Iberdrola appreciated 1.66%, Cellnex fell 0.15% and the oil company Repsol lost 0.64% . (Information from Flora Gómez; additional information from Yoruk Bahceli; Edited by Janisse Huambachano)