“At the moment, investors seem more focused on Powell’s acknowledgment that disinflationary forces are taking hold, rather than his concerns about the latest jobs data.”said Susannah Streeter, a market analyst at Hargreaves Lansdown.
Signs of economic resilience and better-than-expected business reports helped European stocks rally, with gains around 8% this yearafter the aggressive global rate hike cycle led them to its biggest annual drop since 2018.
Of the 93 STOXX 600 companies that have submitted balance sheets so far, more than half exceeded market expectationsaccording to Refinitiv data.
The energy sector, which gained 1.7%, was the most advanced in Europe, led by a 10.6% rise at Finnish refiner Neste and 6.8% at Norwegian oil and gas producer Equinor after the good results of the fourth quarter. The good results also prompted a rise of 1.2% in chemical values.
The ibex-35 at a maximum of a year and a half
The selective Spanish stock market Ibex-35 closed with an increase of 54.90 points on Wednesday, 0.60%, up to 9,227.30 points, while the index of large European values FTSE Eurofirst 300 rose 0.24%.
In the banking sector, Santander rose 0.2%, BBVA fell 0.3%, Caixabank advanced 1.6%, Sabadell gained 2.9%, Bankinter rose 2.1% and Unicaja Banco lost one 0.5%
The results of Logista presented before the opening did not convince investors, since the company left 2.45% on the stock market this Wednesday, despite increasing its profit by 15% in the first quarter.
Powell’s words
The president of the Federal Reserve, Jerome Powellsaid on Tuesday that strong employment data released last week affirms that the central bank has a ways to go in the process of rate hikes. The official of the monetary entity also said about the employment data for January that “We didn’t expect them to be that strong.”
Powell said the numbers “show why this is going to be a process that will take a significant amount of time,” when it comes to tightening monetary policy. The head of the Fed, on the other hand, said that we will have to wait until next year for inflation in the United States to reach 2%.
Source: Ambito
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