The Ibex 35 index closed lower but is salvaging the week above 11,400.

The IBEX 35 index closed down 0.34% at 11,404.90 points. The hardest-hit shares were Cellnex, which fell 2.47%, while Melia Hotels fell 2.38%. In terms of gains, Banco Sabadell rose 1.24% and Bankinter rose 1.20%.

The Madrid selection ends the week slightly higher (+0.73%), during which it reached a new high of 11,444 points, the highest level not only this year but also since July 2015.

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Trading in stock markets continues to be driven by speculation on monetary policy. Yesterday Thursday The ECB cut rates for the first time in five years, with a 25 basis point cut, but gave no clues as to what it would do at subsequent meetings of the year. He also raised his consumer price index forecasts for this year and next, signaling that fighting inflation remains challenging.

The ball now falls to the Federal Reserve, which meets next week and no changes in monetary policy are expected. Investors’ hopes were riding on the September contraction, but they got a bucket of cold water today with the May jobs report released by the Labor Department. The report showed the creation of 272,000 jobs, well above the 190,000 expected from the previous month’s figure of 165,000. The US unemployment rate rose to 4.0% from 3.9%, according to the Labor Department, against a forecast of 3.9%.

As for the average hourly wage, in May it increased by 0.4%. The forecast was for growth of 0.3%. On an annualized basis, average hourly wages rose 4.1%, compared with the 3.9% forecast.

In other macroeconomic updates of the day, eurozone GDP grew by 0.3% in the first quarter of 2024, according to the third reading of data published by Eurostat. This expansion allowed quarterly growth rates to match those of the United States for the first time since mid-2022.

On the business front, the focus continues to be on BBVA’s hostile takeover plan to take over Banco Sabadell. Although the surgery can take six to eight months, it’s a rare day that goes unheard of, and today was no exception. In an interview provided ZERO WaveECB Vice President and former Economy Minister Luis De Guindos wanted to distance himself from assessments about whether the merger would lead to a loss of competition in the Spanish financial sector.

The ECB is likely to be the first supervisor to rule on a takeover bid, but it will focus only on the solvency and sustainability of the future merged bank.

Another big player of the day is Aena, which is aiming to mark a small 0.5% rate increase next year after winning approval from the National Markets and Competition Commission to review its costs. However, analysts still don’t see much potential in the airport manager, which has performed slightly better than Ibex 35 this year.

In the recommendations section, Berenberg recommended leaving shares of Redeia (REE) unchanged, with a target price of 16.70 euros per share compared to the previous 15. CaixaBank BPI, for its part, lowered its expectations for the shares of the company chaired by Beatriz Corredor to neutral from buy , while raising the target price of its shares to 18.10 euros from the previous 17.90.

On the other hand, analysts at Intesa Sanpaolo upgraded their recommendation for Acciona Energías Renovables from “sell” to “hold”. This move will also entail an increase in the target price, which will rise from 18.50 to 20.90 euros. For its part, Deutsche Bank raised its target price to 22 euros.

From a technical analysis perspective, Jose Antonio Gonzalez looked at Telefonica’s price today, focusing on its key levels and trend.

At the Continuous Market, all eyes are on Puig. The company, which just completed its first month as a listed company, is limiting the presence of family members on its board of directors, Cinco Diaz said. It is established that they cannot exceed half of the total composition of the governing body.

European stock markets and Wall Street

Red numbers also dominated the rest of European stock markets, with the EURO STOXX 50 index falling 0.34% to 5,051. The German DAX fell 0.50%. In Paris, the CAC 40 fell 0.48% and in London the FTSE 100 lost 0.51%.

On Wall Street, US employment data was the first blow to the market, but it is gradually trying to recover. In any case, it looks like the indices will be able to finish the week with a positive balance after the Nasdaq and S&P 500 hit new all-time highs.

This behavior was largely caused by NVIDIA, which still does not find any brakes. The semiconductor giant will split today in regular trading, which will make it easier for retail investors to buy the stock and, above all, could open the door for the Dow Jones Industrial Average.

Chinese shares fell in Asian trading on Friday despite the country’s exports rising for the second month in a row in May and at a faster pace after a report that US lawmakers are pushing to ban Chinese companies from using batteries linked to Ford and Volkswagen exports to the US. . Meanwhile in Tokyo, the Tokyo Nikkei 225 index ended the week at 38,660.50 after falling just 0.22%.

In fixed income, the US 10-year yield rose 14 points to 4.42%, although it was still a long way from the 4.6% hit last week following US jobs data. On this side of the Atlantic, 10-year Spanish bonds offer a secondary market yield of 3.393%, leaving the risk premium to their German counterpart at 76.95 points.

In commodity markets, oil prices are stabilizing after OPEC+ members such as Saudi Arabia and Russia signaled their willingness to halt or reverse oil production growth. However, crude oil is still heading for a third straight weekly decline due to demand concerns.

European Brent crude futures rose 0.03% to $79.90 a barrel, while U.S. West Texas Intermediate crude futures rose 0.37% to $75.83.

The euro fell 0.76% against the dollar, leaving the exchange rate at $1.0808 for each community currency.

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