Spanish Banks Rise 8% In The Week After A Historic Rate Hike


The victory of the hawks against the doves is the economic news that has starred in the week, after learning of the decision of the European Central Bank to execute an increase of 75 basic points in interest rates , that is, the most forceful upward movement of its entire history. A news that leaves the Spanish banking sector with a rise of 8% in the last five days, with Bankinter leading this rebound, with 10.6%.

This rise is reflected in the same way in the Stoxx 600 Banks, the subindex that includes the largest European banking entities by capitalization, which has rebounded 2.6% in the last five days and is the second industry that has risen the most this week within of the Stoxx 600, only behind that of the basic resources.

As for fixed income, sales have prevailed this week on this side of the Atlantic, despite the fact that purchases picked up again on Friday. In the case of the Spanish sovereign bond with a maturity of 10 years, the yield has risen up to 8 basis points in the last five days, standing at 2.85%, that is, just 0.3 points from the maximum of the year, when it reached 3.1%.

The return on the German bund, for its part, increased 13 points this week, and stands at around 1.69%. And it is that, the increases in interest rates are causing falls in the price of securities in the markets. So much so that, for the first time in ten years, corporate bonds issued in euros offer a yield very similar to that of dividends from European listed companies. Specifically,offers a 3.53% yield and the dividend yield on the Stoxx 600 , meanwhile, amounts to 3.63%, meaning that the yield on debt is just 0.10 percentage point lower.

Thus, and back to equities, although the debate regarding the greater or lesser aggressiveness with which the rise in the price of money would be executed was still open for many experts, the markets had already been discounting the hardest of the scenarios. Therefore, the ECB statement has not had an impact, for the time being, on the price of the European indices and the main markets on the continent have managed to close the week in green , with the Spanish Ibex as the index that has rebounded the most in recent days. , with a rise of 1.3% with the support of the bank.

Then there is the British FTSE 100, which advanced 0.9% – which operated normally in the Friday session after the death of the monarch Elizabeth II –, followed by the Italian market, with a rise of 0.8% and the French, with 0.7%.

By technical analysis, according to Joan Cabrero, advisor to Ecotrader: “You can see how important it is in the short term that the Ibex 35 manages to rise from that support of 7,765 points. Operationally, in the current price environment, with a low stop those 7,765 points, I am more a buyer than a seller in Spanish equities.

Do not think of selling without losing that support of 7,765 points. On the other hand, to be able to favor that the next rebound is sustainable and we can trust it the least What is required is that it manages to break the bearish guideline that appears at 8,250 points”, the expert concludes.

By stock, as already mentioned, banking entities have been the true protagonists of the Ibex, with Bankinter advancing up to 10.6% in the last five days, followed by CaixaBank, with 9.8%, and Banco Sabadell, which closes the top 3 with 8.7%. BBVA occupies the fourth position, with 6.4%, and Solaria Energía slips into the top 5 with 5.6%. On the other side of the table is Meliá, which is the company that is left the most on the stock market this week with -7%, followed by Telefónica, which loses 5.78%, and Rovi, which drops another 4.73%.

Rises in the euro and the ‘Brent’
In the crossing of the euro against the dollar, the continental currency lost strength this week and reached an annual low last Tuesday, when it fell from around 0.99. However, the European currency regained momentum in recent sessions and yesterday it stood at 1.004 at the close of the European stock markets.

The price of Brent, the benchmark for crude oil in Europe, has risen more than 4% , and is around 91.90, since last Wednesday, the day it fell to the lows of February, when the price of a barrel reached 88 dollars despite the OPEC production cut announced on Monday.

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