Capricorn 35, live | Stock markets set to fall as ongoing inflation pushes back rate cuts | Financial markets

What does Ibex 35 do?

Markets are trying to digest US inflation data, which fell less than expected. Euro Stoxx 50 futures are expected to open negatively. The Ibex 35 index fell 0.59% yesterday and today starts at 9925 points. The Spanish selective market has shown a decline of 1.75% this year.

What are the rest of the stock markets doing?

Chinese stock markets remain closed for the Lunar New Year holiday.

Wall Street closed in the red yesterday and the Dow Jones Industrial Average lost 500 points as inflation continued. For its part, technology company Nvidia surpassed e-commerce giant Amazon in market value Tuesday at the close of the session on Wall Street, a milestone it hasn’t reached since 2002.

Keys of the day

• The U.S. inflation rate fell again in January by three-tenths to 3.1%, while core inflation, which excludes the most volatile elements such as fresh food or energy, remained stable year-on-year at 3 ,9%. . The data disappointed the market, which had expected a further rate cut to 2.9%, which could delay the start of interest rate cuts. Expectations that the Fed will make several rate cuts this year are once again being challenged.
• The 10-year US Treasury note received support from the consumer price index and closed the session at 4.316%.
• In Europe today, several relevant indicators are known, such as Eurozone GDP for the fourth quarter of 2023. Preliminary data showed a stagnant economy, with the region narrowly avoiding a technical recession. Also the unemployment rate and industrial production in the region.
• In Spain, Mapfre publishes its 2023 commercial results and Aedas Homes reports its financial results for the first nine months of last year at market close.
• There are statements by the Vice President of the European Central Bank (ECB), Luis de Guindos.

What do analysts say?

Tiffany Wilding, an economist at PIMCO, argues that the US inflation report “was more resilient than expected” and “while a lot could happen between now and mid-year as Federal Reserve officials plan to begin easing monetary policy, reports like these could delay the start of rate cuts.” He reiterates his view that the Fed “will not cut rates until mid-year (or later).”

What is the evolution of debt, currency and commodities?

Euros exchange at $1.0715.

Brent crude, Europe’s benchmark, costs $82.66 a barrel.

The yield on 10-year Spanish bonds rose to 3.360%.

Quotes

STOCK EXCHANGE – CURRENCIES – DEBT – INTEREST RATES – RAW MATERIALS

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