The IBEX 35 is trading mid-session with slight declines of 0.3%. The most significant increases are Grifols A with 2.25%, Solaria with 2.03%, Acciona Energía with 1.75%, Acciona with 1.40% and Laboratorios Rovi with 1.05%.
For their part, the biggest falls were BBVA at 4.58%, ACS at 1.18%, Aena at 1.05%, Unicaja Banco at 0.32% and Ferrovial at 0.31%.
The BBVA’s ouster came after the incumbent president, moderate Islamist Recep Tayyip Erdogan, won the presidential election, but without the absolute majority needed to avoid a second round in two weeks against opposition candidate, Social Democrat Kemal Kiliçdaroglu. BBVA is represented in the country through Garanti.
This morning the European Commission raised its growth forecasts for the Spanish economy in 2023 to 1.9%, five tenths above the winter forecast, while for the current year it is forecasting an inflation rate in Spain of 4%, four tenths below previous estimates.
For its part, the joint statistical office Eurostat today published the industrial production index for the euro area for March, a month in which a fall of 4.1% was recorded compared to the previous month, when it rose by 1.5%, representing the largest monthly fall since last October while the data came in down 1.4% compared to the same month in 2022.
This week investors will be watching various macro data from the Eurozone (inflation and GDP) as well as the ZEW confidence index and the Eurogroup meeting. In the area of monetary policy, there will be several interventions by ECB President Christine Lagarde and Vice-President Luis de Guindos.
European equity markets are trading up this Monday, moving away from falls in the Ibex 35. France’s CAC 40 appreciates 0.47%, Britain’s FTSE 100 gains 0.45%, EURO STOXX 50 gains 0.27% , the Portuguese PSI 20 0.25%, the Dax 0.2% and the Italian FTSE MIB 0.14%.
The Tokyo Stock Exchange ended today with its main indicator, the Nikkei, up 0.81% closed at its best level in 18 months, bolstered by exporters and on the recent earnings announcements from several Japanese companies. The Nikkei ended up 238.04 points to 29,626.34 whole numbers, while the Topix index, which groups the largest capitalization stocks, was up 18.46 points, or 0.88%, to total 2,114. 85 ended.
The wholesale price index for Germany fell slightly year-on-year in April, the first year-on-year decline since December 2020, according to data released on Monday. Wholesale prices fell 0.5% year-on-year and 0.4% month-on-month, compared with March readings of 2.0% and 0.2%, respectively, the Federal Statistical Office said.
Japan’s wholesale inflation slowed for a fourth straight month in April as rising commodity costs eased, data on Monday showed. This suggests that consumer inflation will ease back towards the central bank’s target for the year. 2%
The corporate goods price index, which measures the price companies charge each other for their goods and services, rose 5.8% year on year in April, slowing its annual pace of increase for the fourth straight month, data from the BOJ showed. The rise beat the median market forecast of 5.4% and followed a 7.4% rise in March.
China’s central bank extended overdue medium-term debt on Monday and left interest rates unchanged as expected, but markets anticipate that monetary easing will be inevitable in the coming months to support the economic recovery.
The People’s Bank of China said it would leave the 125 billion yuan (US$18.08 billion) interest rate on one-year medium-term loans (MLFs) to some financial institutions unchanged from the 2.75% of the previous operation.
The leaders of The Group of Seven (G7) plans to tighten sanctions on Russia at its summit in Japan this weekwith measures targeting the energy sector and exports to support Moscow’s war campaign, officials with direct knowledge of the discussions said.
The Housing Right bill will be debated in the Senate plenary session on Wednesday. It is expected to receive final approval for publication in the BOE ahead of the May 28 regional and local elections.
In the commodity market, a barrel of Brent hit $74.31, up 0.16%, while West Texas Intermediate rose 0.32% to $70.22.
The yield on Spain’s 10-year bond fell slightly in secondary debt markets to 3.361% from 3.366% at the start of the session. As a result, the risk premium fell by 1.66 points to 106.65 basis points.
On the foreign exchange market, the euro remained stable against the dollar, so the exchange rate for each euro was around $1.0873.