The Ibex pivots on new highs and touches 16,800 points
The Ibex 35 continues without brakes and climbs towards a new all-time high. The Spanish stock market benchmark exceeds 16,800 points, an unprecedented level in the history of the index, which is on track to close its best year since 1993, when an increase of 54% was recorded. Expectations that the Federal Reserve will lower interest rates at its meeting next week with a probability of 90% flood the market with optimism and pave the way for the Christmas rally to materialize.
The stock markets of the Old Continent succumb to the green at the opening of a session that will be marked by the publication of the PCE price index for September, a key indicator used by the Fed to make its monetary policy decisions, so it can condition the day. Among the main markets, the German Dax rose 0.47%, the Italian FTSE MIB rose 0.34%, the French CAC 40 rose 0.26% and the FTSE 100 rose 0.16%.
Investor attention in the region will be on the publication of the Eurozone GDP, as well as in Germany. The Bundestag will vote on a law on pensions that Chancellor Merz could have difficulties in passing due to the opposition of the youngest members of his own coalition, considering it harmful for future generations, because it involves high spending to maintain this benefit and requires far-reaching reforms. “If it is not approved or even done with the help of the opposition, it could generate uncertainty about the stability of the German government, only seven months after its constitution,” say Renta 4 analysts.
The increases are imposed after the mixed tone of Asia and Wall Street after knowing the labor market data, which in the opinion of experts shows a weakening of employment and further fuels the possibilities of another cut in the price of money from the 3.75-4% range set in the last meeting.
