Madrid, May 28 (EFE) .- The better prospects for recovery, advances in vaccination processes and the expansive budget designed by US President Joe Biden for next year have encouraged European stock markets, which have ended the week in positive.
Although the latest known indicators confirm an upturn in inflation, especially in the US, investors have put their fears in the background, alleviated by statements by officials of the Federal Reserve and the European Central Bank (ECB) that distance a possible withdrawal of monetary stimuli.
The Ibex 35, the main index of the Spanish Stock Market, rose 0.42% today, increasing 0.22% for the week as a whole, recovering the level of 9,200 points and reaching the highest level since the end of February 2020.
The selective, which has been on the rise for seven weeks, has added 38.5 points on the day and has closed at 9,224.6. In the absence of a session to end the month, the Ibex gained 4.65% in May. So far this year, it is up 14.2%.
In the rest of Europe, Paris has today gained 0.75%; Frankfurt, 0.74%; Milan, 0.45%; and London, 0.04%.
In the whole of the week, Paris has risen 1.53%; Milan, 0.78%; Frankfurt, 0.53%; and London, 0.06%.
In Asia, increases have also been imposed. Tokyo has advanced 2.1% today; Hong Kong, 0.04%; and Seoul, 0.73%.
On Wall Street, the major indices (Dow Jones, S&P 500 and Nasdaq) are trading green.
According to Sergio Ávila, an analyst at IG, “investors are increasingly optimistic about the economic recovery” due to the advances in vaccination against the coronavirus and “due to the huge stimulus packages worldwide.”
“The expectations that the economic recovery will accelerate in the short term, especially in the US, have been reinforced by the announcement of the Biden Administration of its largest spending budget since World War II,” emphasizes Fátima Herranz, of Singular Bank.
According to The New York Times, the US budget for next year will amount to 6 trillion dollars (4.9 trillion euros). The project designed by Biden includes the infrastructure investment plan announced by the US president.
In the field of vaccines, the European Medicines Agency (EMA) has authorized the use of the Pfizer compound in adolescents between twelve and fifteen years of age.
“This decision will help to increase the rate of vaccination in the EU,” explains Herranz.
“In the end, the balance for the week is quite positive, especially for the US markets,” says Darío García, an analyst at XTB.
In the debt market, yields fall on both sides of the Atlantic as the idea prevails that the rise in inflation will be temporary.
Interest on the ten-year Spanish bond, the benchmark, falls to 0.469%, while that of the US bond falls to 1.587%.
In the foreign exchange market, the euro rises against the dollar and changes to 1.22 units.
In the oil market, prices rebound due to the better prospects for recovery, although investors are still awaiting the possible lifting of sanctions on Iran, which would increase the supply of crude.
Brent, the benchmark oil in Europe, rose 0.3% to $ 69.4 per barrel, while West Texas Intermediate (WTI), the benchmark in the US, rose 0.1% to close to 67 Dollars.
The price of gold, one of the safe haven assets, advances and exceeds 1,903 dollars per ounce, thus recovering the level of 1,900 dollars.
(c) EFE Agency