Ibex expects Yellen to confirm plans for three rate hikes this year

The Fed president will return to talk Thursday after her statements last week

  • Yellen's words will be followed closely after other Fed members have raised four rate hikes in 2017
  • The Spanish index managed to close this Wednesday in positive after having fallen to more than 1% in intraday
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Bolsamanía
Bolsamania | 23 mar, 2017 09:09 - Actualizado: 09:21
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European shares opened higher on Thursday (Ibex: + 0.19%) after yesterday's Wall Street closed the session with mixed sign (Dow Jones: -0.03%, S & P: + 0.19%, Nasdaq: + 0.48%). In the specific case of the Ibex, the index was able to close on Wednesday after having fallen, in intraday, more than 1%. All this in a day in which terrorism returns to the forefront of today after the London bombing that has caused five deaths (including the murderer himself) and 40 wounded, many of them "very serious".

IBEX 35
19.347,400
  • -0,29%-56,70
  • Max: 19.439,00
  • Min: 19.330,40
  • Volume: -
  • MM 200 : 17.077,07
17:35 19/06/26

At the macro level, the appearance of Janet Yellen around 13:45 Spanish time is the highlight. The words of the president of the Federal Reserve will be followed closely to try to see if the top representative of the agency confirms that there will be three rate hikes this year. This, after this week, Philadelphia Fed chairman Charles Evans left open the possibility of four rate hikes in 2017.

After a positive close on Wednesday, Bolsamania experts stress that it is "very strong". "Yesterday made it very clear (the Ibex) that is not for the work of correcting with force," says José María Rodríguez, an analyst at Bolsamanía. Add this expert that seems difficult to fall if we consider the strength of banks (especially BBVA) and Telefonica. "The financial sector remains strong, especially in our country", stresses the expert.

Oil will also focus the attention of investors today. Crude oil inventories posted on Wednesday were worse than expected. Inventories rose more than expected (by 5 million barrels compared to the expected 2.1-2.8 million barrels). At this time the oil rebounds after the cuts of the last day. The Brent barrel stands at $ 50.94 (+ 0.59%) and West Texas adds 0.67% up ($ 48.36).

"The initial reaction of the price of crude oil to these (inventory) data was negative, but later, investors chose to see the 'half full glass', encouraged by the decline in inventories of petroleum products, which made That oil price declines will moderate, "Link Securities analysts said in its daily report on Thursday.

IMPORTANT VOTE IN WASHINGTON

The law is expected to vote this evening to overturn much of the health care reform bill of former President Barack Obama, known as 'Obamacare'. For now, Republicans, despite having a majority in the House, are not assured of approval as some three dozen representatives of the conservative wing of the party have threatened to vote against considering that the changes to the aforementioned law are not enough far. The Republican party can only lose 21 votes as all Democrats are expected to vote en bloc against the new law.

"The importance of passing or not passing this law is very relevant, mainly because, if not, it would question the Trump Government's ability to carry out the rest of its program, especially the part that refers to the tax reform , Deregulation and infrastructure planning, "explained Link Securities experts.

They add from Link that a defeat in the vote will be "very poorly received by the financial markets, causing falls in the stock exchanges and the flight of the investors towards assets considered refuge, like the gold or the bonds of the Treasure."

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