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The Ibex 35 loses 1.77% and marks a four-month low, but manages to save 7,800

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The Ibex 35 and the rest of the stock markets of the Old Continent have traded with sharp declines this Thursdaywhile fears persist in a context marked by high inflation, fear of recession and the growing fear that the earnings season will end up disappointing. The selective Spanish has left a 1.77% and has marked minimums of March, but has managed to save the level of 7,800 points (it has finished in 7,804.3), after chaining five clipping sessions.

The US CPI for June soared to 9.1%, higher than expected, as reported yesterday. This increases the chances of an even stronger rate hike by the Fed at the end of the month. In addition, after knowing the data, the Bank of Canada increased rates no less than 100 basis points. Rates have also risen, outside the calendar, Singapore and the Philippinesat 75 basis points, respectively.

«Yesterday’s (CPI) even bigger rise to 9.1% in June has made the odds of a 75 basis point rate hike later this month (by the Fed) become 100 basis pointseven as core prices eased slightly from 6% to 5.9%,» said Michael Hewson, director of research at CMC Markets.

After yesterday’s reference, the president of the Atlanta Fed, Raphael Bosticexpressed concern about the strength of the June figure and said that «everything is at stake» for July.

Today, investors are paying attention to companies again, with the publication of the results of JP Morgan (enters less than expected and suspends share buybacks) and Morgan Stanley (earns one billion less in the second quarter). Also, Brussels Spain’s GDP has fallen to 2.1% in 2023 and believes that inflation will be 8.1% this year. On the other side of the Atlantic, the weekly unemployment claimswhich have increased to a maximum of eight months.

All this while uncertainty continues, with many open fronts: the incessant increase in prices, the fear of a recession while central banks act forcefully, the uncertainty about what may happen to corporate results in this second quarter… BlackRock has recognized today that business forecasts are too optimistic given the circumstances, while lowers its advice on developed market equities to ‘underweight’.

To all this is added, of course, the situation that is being experienced in the currency market, with the euro/dollar parity and its derivatives; the comings and goings of crude oil; and various ‘black swans’, such as the latest tax announced in Spain on banks which, according to experts from DBRS or UBS, it could take out 10% of the net profits of the national banking system, or the government crisis in Italy (hence the Ftse MIB is the worst index today).

ALMOST EVERYTHING FALLS

Inside the Ibex, virtually every stock has traded in the red now. Acciona (-6.16%), PharmaMar (-5.27%) and Grifols (-5.13%) were the values ​​that fell the most in the session. On the positive side, only four titles have survived: Aena (2.67%), IAG (1.52%), Cellnex (1.24%) and Siemens Gamesa (0.42%).

From the business point of view, today there has been talk in Spain of other companies outside the selective. A) Yes, Viscofan has risen 2.4% after Berenberg has initiated the coverage with ‘buy’ and a target price of 68 euros. Also, DAY has published a preview of its sales for the first semester, which grew by 8.5%, to 3,645 million euros. The company has said that these figures «show a turning point». Likewise, Adolfo Dominguez has posted results Y Applus has announced a purchase in Colombia.

In Europe, the Swedish ericson has announced figures. Total revenue rose to 62.5 billion kronor from 54.9 billion, beating estimates.

OTHER MARKETS

The euro is now trading at $1.0043 (-0.16%). Oil falls 3% and moves away more than 100 dollars a barrel. Brent stands at $97.79 and WTI at $94.26.

Gold yields 1.7% ($1,706) and silver loses 3.9% ($18.46).

Bitcoin is flat ($19,678), as is Ethereum ($1,079).

The return on the 10-year US bond stands at 2.935%.

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