Ibex 35 struggles to hold 10,100 pips: IAG and Grifols, heads and tails on the trading floor

The IBEX 35 index fell 0.08% at Wednesday’s open at 10,108.60. Grifols shares were again the hardest hit, falling 4.71% compared to Acciona Energías Renovables’ 1.04%. IAG (Iberia) shares rose 2.74% following an upgrade from JP Morgan, while Inmobiliaria Colonial rose 1.04%.

One of the main characters of the day is Indra, who today presented her new strategic plan. The company expects to invoice 6 billion euros in 2026 and reach a business volume of 10 billion euros in 2030, according to a document sent to the National Securities Market Commission (CNMV). This figure will mean a doubling of the 4.343 million euros received last year. year.

Indra will change this structure and will now have the areas of defence, air traffic control, space, MinSite (including mobility) and “new industrial enterprises” yet to be determined. Therefore, the company indicated that plans to include new partners in the Ministry of Website to increase its autonomy and will also create a new subsidiary focused on the space sector.

Grifols will continue to be in the eye of the storm for another day as the deadline for auditor KPMG to sign off on its 2023 reports continues. Moody’s announced that it is putting Grifols’ rating under review for possible downgrade. due to less cash flow and delay in publishing audited reports. The blood products company has a corporate family rating of B2.

For its part, Cellnex received an investment grade rating of BBB- from credit rating agency S&P, representing a one-notch upgrade from BB+, the target the Spanish company has set for this year.

In the financial sector, one of the main heroes of the morning is Banco Santander, which, according to the newspaper Extension he faces trial against Banco Popular with a risk of 145 million. This is anticipated by the organization, which in its annual report for 2023 estimated the maximum amount it would have to bear for vicarious civil liability at 680 million euros, although it has already paid most of it.

As for the analysts’ recommendations, JP Morgan raises recommendation on IAG (Iberia) shares in two stages, from “underweight” to “overweight”, this movement is also accompanied by an increase in the target price to 2.50 euros per share from the previous 1.45 euros. Assume growth potential 50%.

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In the macro section, investors breakfasted on Germany’s trade balance, which showed a surplus of 27.5 billion euros in January, with exports up 6.3% and imports up 3.6%. Retail sales in the eurozone will also be known throughout the morning.

However, today all attention is focused Federal Reserve President Jerome Powell, who will address the House Financial Services Committee as part of his biannual testimony to US lawmakers. In principle, “we expect neutral intervention from Powell, who will try not to be too vague about when the Fed will start cutting base rates. However, what it says about the current state of the economy and the expected evolution of inflation “It may provide a clue about the future intentions of the US central bank regarding monetary policy,” says Juan J. Fernandez-Figares of Link Gestión.

Also due this afternoon in the US will be the release of private sector employment evolution data released monthly by payroll processor ADP for February; and data on job offers, in this case for January, to be announced by the Ministry of Labor. “The strength of the US labor market is one of the main drivers of the Fed’s actions on interest rates, hence the relevance to markets of any employment data released in the US,” he recalls Fernandez-Figares.

Also in focus is tomorrow’s European Central Bank (ECB) monetary policy meeting. While no interest rate changes are expected, investors will be watching Christine Lagarde’s every word closely to see when rates start to fall.

At the moment, on the rest of the European stock markets, the DAX index is timidly falling above 17,694.86 points. FT-100 falls to 7,640.19 points, CAC 40 falls to 7,926.51 points, EURO STOXX 50 opens moderately lower to 4,892.15 points and FTSE MIB starts the session at 33,143 points.

Wall Street futures are pointing to a slight but bullish opening to today’s session after New York’s major indexes were punished again yesterday, with the DOW JONES and S&P 500 falling just over 1% and the Nasdaq losing 1.65 % on the exchange. closing of the next session.

During the Asian session, the Nikkei 225 index achieved a timid gain of 0.06% and remains in the high zone, marking 40,122.50 points. China’s CSI 30 index, however, fell 0.41% as investors anxiously await economic stimulus announcements made during the National People’s Congress, China’s top government body.

In commodity markets, oil prices edged up marginally early this morning amid concerns over China’s growth targets and OPEC+ supply constraints. Benchmark Brent in Europe rose 0.37% to $81.63, while US West Texas futures rose 0.56% to $78.59.

The euro rose 0.06% against the dollar to $1.0863 per community currency.

On the crypto front, Bitcoin is taking a break and trading at US$66,205 after it managed to break the US$69,000 barrier for the first time in history in yesterday’s session before pulling back.

Gold also remained in the upper zone, with a slight early morning decline of 0.14% to $2,138.70 an ounce.

In fixed income, ahead of Powell today and the ECB tomorrow, Spanish 10-year bond yields fall to 3.173%, leaving the risk premium to their German counterpart at 88.55 points. On the other side of the Atlantic, the US 10-year yield is 4.150%.

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