After starting the day with slight hesitation, the Ibex 35 accelerated, rising 1.5% and surpassing 8,300 points on the back of sharp gains recorded by stocks in the banking sector. Santander, CaixaBank, Bankinter and Sabadell were up more than 2%. Banks and governments have been negotiating against the clock to present aid to vulnerable, mortgaged people to the Council of Ministers today.
Above the banks, the behavior of Repsol stands out, whose shares are up more than 5%. There are few stocks that are currently trading in the red. Specifically, half a dozen stocks are suffering losses. Fluidra takes the worst part down 1.9%
Growth also predominated in Asia today. However, gains in China have been limited by the worsening Covid-19 situation in the country. The fact that China has shown movement away from zero Covid is “very significant” but has been drowned out by the latest news of a resurgence of cases in Beijing, said Ray Attrill, head of monetary strategy at National Australia Bank.
The Chinese capital warned on Monday that it was facing the pandemic’s most severe test, stoking investor concerns that China could be forced to resume strict movement restrictions and issue stay-at-home orders in all cities.
Rising cases in manufacturing cities could lead to supply chain disruptions, said Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong, according to Reuters.
Meanwhile, Japan’s Nikkei rose 0.69% as the weak yen against the dollar boosted prospects for domestic manufacturers.
On today’s macro agenda are the European Commission will publish it expanded consumer confidence indicator data for November. Analyst consensus expects a slight improvement of 2.6 points to -25.0 points, staying close to September’s all-time low (-28.8 points).
In the forex market, the dollar pared some of its strong overnight gains on Tuesday after investors flocked to the safe-haven currency amid jitters over the Covid outbreak in China, but analysts at National Australia Bank doubted demand after the dollar was sustainable.
“Evidence that US inflation has peaked and could fall significantly in 2023, along with developments in China and Europe, convinces us that a dollar depreciation cycle is now underway,” a note said Tuesday .
The market is awaiting the latest Fed minutes released on Wednesday for further clarity. The benchmark 10-year Treasury yield rose five basis points.
In the commodity market, oil prices rose today, a day after Saudi Arabia denied a media report that it was in talks with OPEC and its allies to increase oil supplies.
US crude increased early trade gains by 0.36% to $80.33 a barrel and Brent is trading at $87.88, up 0.49%.