The Ibex exceeds 8,400 points as the markets weigh the effect of the Biden stimulus



FILE PHOTO: A stockbroker inside the Madrid Stock Exchange


© Reuters/Susana Vera
FILE PHOTO: A stockbroker inside the Madrid Stock Exchange

Mar 8 (Reuters) – The Ibex-35 opened the week with force, surpassing the 8,400 point barrier, in another session of turmoil in the debt markets due to concerns about the effect of the aid package approved by the United States Senate on inflation, which was nevertheless enthusiastically welcomed by an optimistic European financial sector regarding the possibility of a strong economic recovery.

* Markets remained uneasy about whether President Joe Biden’s $ 1.9 trillion package will contribute to a faster recovery from the impact of COVID-19, or if it will instead cause the world’s largest economy to overheat. that it derives in a galloping inflation that weighs on the results of the companies.

* Treasury Secretary Janet Yellen said Monday that the aid package will provide enough resources to drive a “very strong” economic recovery, noting however that “there are tools” to deal with inflation.

* Most analysts expect an acceleration in inflation, fueled in part by the latest spike in oil prices, with Brent briefly surpassing $ 70 on Monday for the first time since January 2020, following a series of attacks on Saudi facilities and the US Senate green light for aid, before starting to fall during the session.

* In this context, the Ibex-35 closed the wheel on Monday with a rise of 157.40 points, or 1.90 percent, to 8,444.20 points, its highest level since March 2020, while the index of Large European stocks FTSE Eurofirst 300 rose 2.18%.

* Banks led the index rises, as investors continued to bet on sectors linked to the health of the economy in the hope that there will be a solid economic rebound after the health crisis.

* Santander rose 2.50%, BBVA rose 2.06%, Caixabank increased 2.71%, Bankia rose 2.66%, Sabadell gained 6.98% and Bankinter appreciated 4.24% .

* “Reflationary bets are having a more positive effect on European equities overall, as they are not as exposed to growth and technology as those in the United States,” said Neil Wilson, chief markets analyst at Markets.com .

* Among the large non-financial securities, Telefónica registered 0.73%, Inditex increased 2.67%, Iberdrola appreciated 2.11%, Cellnex fell 1.13% and the oil company Repsol lost 2.60 %, standing last in the table.

* The price of a barrel of Brent crude was trading down 1.02%, after reaching highs in January 2020.

* At the top of the index, Solaria stood out, rebounding 7.06% after having accumulated a 15.68% drop in the last four sessions.

* The increases in tourism-related values ​​also stood out, with IAG gaining 3.21%, the Amadeus flight reservations group revaluing 1.08% and the hotel company Meliá registering 4.66%, encouraged by the prospect of vaccination passports in the UK.

(Information from Darío Fernández; additional information from Chuck Mikolajczak, Sruthi Shankar and Shreyashi Sanyal; edited by Javier Leira)

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