Saturday, February 24

Ukraine snatches the 8,700 points from the IBEX

The IBEX 35 has closed its first week with losses after four consecutive gains. The streak has been broken because the downward pressure has been unsustainable.

Fear of war in Ukraine, with incalculable consequences for the countries that may be involved, has begun trading on the market.

To this is added some business results that, for the moment, are below forecasts and the fear of the meeting that the Fed will hold next week.

The most anticipated monetary policy meeting

This meeting is one of the most anticipated in recent times, as the markets expect the United States central bank to put end to the low rates of the coronavirus era with several increases this year from March, and even accelerate its withdrawal of stimuli in the face of high levels of inflation, which in December reached its maximum in forty years.

“With less than a week to go until the monetary policy meeting, investors are concerned that the central bank is going to signal aggressive rate hikes and an imminent and rapid reduction of its balance sheet. In effect, it may throw the stock market into the feet of the horses to stamp out inflation,” IG analysts explained.

In the end, it has $8.8 trillion and to get rid of them there is no other remedy than to deploy a strong program of bond sales that will drain a lot of liquidity from the market. The days of the crutches that have sustained stock markets and high valuations seem numbered.

Expiration of options and future

The session has also been marked by the volatility that is usually printed by an expiration day of options and futures. And also for the falls that seem to have no end in the Nasdaq of technology companies, the most sensitive to increases in interest rates.

In this way, the IBEX has registered the biggest fall since the beginning of December, 1.36 percent, and has lost the level of 8,700 points. In the week as a whole it has yielded 1.27 percent. And it has already entered into losses in the year, although at the moment they are moderate, of 0.22 percent.

Large stocks have been unable to dodge losses. A) Yes, Santander Bankr has given up 1.5 percent; Inditex 1.4 percent; Repsol and BBVA, 1.35 percent each; Iberdrola 0.74 percent and Telefónica 0.24 percent.