The excellent market response to Inditex’s results was a foresight session for the Spanish Stock Exchange which, however, set prices higher than ever before. The Ibex 35 index crossed this million points during the session by 16,750 points, which ultimately led to a decline of almost 2% of shares of the textile sector. But Wall Street cooled in the face of employment data, and above all, the bank balance fell to 16,585.7 points on the index, an increase of 0.7% and somewhat below the level recorded on November 12. The textile distribution giant, Spain’s largest publicly traded company with a value of €164,000 million, rose 8.9% (more than 10%) after publishing its quarterly results. It’s a record number since Moderna and Pfizer launched the COVID vaccine, all the way back in 2020 and when Donald Trump just won his first election.
Another focus for the market is on growing confidence in a select group of types from the Federal Reserve next week. The market has an 89% probability that Jerome Powell will cut interest rates within just a week, while two weeks ago the percentage was less than 50%. ADP Consulting’s hiring history, well below expectations (32,000 fewer jobs when 5,000 more jobs were expected) has an increased possibility of decline, compared to the cold market. The S&P 500, after opening with slight losses, opted for timid gains, while the Nasdaq has more difficulty recovering.
However, for the caribou, the change in US wine is the same as the change brought about by the bank. Above all, Santander and CaixaBank, among the big three banks, lost more than 1%, the same as Bankinter and Mapfre, with Iberdrola and BBVA also priced in the red. El Ibex, had it not been for Inditex, would have closed to the bottom. Other European markets less exposed to banking closed, with no clear direction; On the Euro Stoxx 50 or CAC index, on the FTSE or Dax index. The currency market is witnessing more movement, as the euro rose by 0.3% to $1,166, the highest level since the end of October. New types of interests in EE UU define the terrain.
Of course, the prospects for a cut are boosted by the upcoming easing from the Fed Chairman. Jerome Powell has a term until May, but Donald Trump has ensured he has the biggest name, and the market has given him the opportunity to have his advisor, Kevin Hassett. “Breaking news that the Trump administration suddenly canceled interviews with finalists for the nomination to head the Fed strengthened the view that Kevin Hassett will replace Jerome Powell,” ING analysts explain. “The market’s response to Hassett’s moderating trend is a weaker dollar, a steeper yield curve, and returns on risky assets.” According to Joan Esteve, Director of Inversiones at Gesinter, “A lower income-related filter is good news for variable income, as smaller types improve corporate valuations, but the loss of the Fed’s independence and its role as a counterweight in maintaining economic discipline would spook fixed income markets, which is why it would have a negative impact on US income variable.”
Improvements in Japan
Another helping of positive sentiment comes from Japan’s Nikkei index rising, estimated at around 1%, despite two days weighed down by expectations that the Bank of Japan (BoJ) will resume raising official interest rates, currently at 0.5%, at its December meeting. “Speculators fear that a species rally by the Bank of Japan in December could lead to unprecedented short covering, similar to the one in July 2024, given the extremely short position of the Japanese yen against the US dollar,” explains Magdalene Teo, an analyst at Julius Baer.
Inverters also received positive news from the more tense areas of the market. So, on the one hand, the price of Bitcoin (driven by a cut-off perspective) was around $93,000. Although still below its peak of 126,000 at the beginning of October, the cryptocurrency’s rebound is also contributing to alleviating fears of an out-of-control explosion. In parallel, shares of the artificial intelligence company Anthropic, which aims to shine on one of the greatest and most famous people in history, could be traded with some relief, after weeks full of doubts about the valuations of artificial intelligence companies. Not enough, in any case, to push the Nasdaq index into the impressive series, among which only Google and Tesla rose.
The Doda market, which had been turbulent in parks and satellites with huge increases in interest for 10 years, is also today experiencing seasons of greater calm, with species prices rising slightly in Europe and falling in the United States. But in the eurozone, the inflation report published by Eurostat reinforces expectations that the ECB will remain in what it calls a “good place,” that is, without changing the types of reference interests. In the market, the lack of surprises leaves Empezan to fill the few remaining pieces of the 2025 puzzle, which was insoluble at its beginning, but which later promises to deliver a historic result for the main Spanish index.
Bags – currency – diodes – types of interest – raw materials