The Ibex 35 has concluded this Wednesday's session with a rise of 1.35%, reaching 19,421.9 points, thus marking a new all-time high for the fourth consecutive day for the main index of the Spanish Stock Exchange.
The selective maintains its bullish streak driven by the peace agreement between the United States (US) and Iran in the Middle East, awaiting the next meeting of the US Federal Reserve (Fed), the first presided over by Kevin Warsh.
Experts consider it practically a given that the US central bank will opt to leave the price of money unchanged, in a context of inflation at three-year highs and a solid labor market.
"The Fed will keep interest rates unchanged today, but I expect its statement to adopt a sufficiently restrictive tone to increase the possibility of a hike in September. Trump's role in appointing Kevin Warsh led many to assume that a moderate-line member was taking control, but his track record is more of a hard-line one," stated the partner and co-director of the investment-grade debt area at TwentyFour AM (Vontobel Boutique), Gordon Shannon.
For his part, the chief economist for the United States at DWS, Christian Scherrmann, has indicated that, despite the uncertainty, he maintains his opinion that the Fed "will keep rates unchanged for the rest of the year."
In the oil market, prices have risen slightly again after US President Donald Trump assured that the reopening of the Strait of Hormuz will occur in "a day or two." With this, Brent, the benchmark for Europe, was up 1.2% at the close of the European markets and recovered the level of 80 dollars per barrel, while West Texas Intermediate (WTI), the benchmark in the US, was around 77 'greenbacks' after registering a 1.3% increase.
European markets close mixed
On the macroeconomic front, UK inflation stood at 2.8% in May, the same rate of increase in the cost of living recorded the previous month.
In Spain, the President of the Government, Pedro Sánchez, announced this Wednesday that the last Council of Ministers in June will approve a new decree-law with fiscal and economic support measures to mitigate the consequences of the international conflict arising from the war between Iran and Israel.
In the corporate sphere, Josep María Recasens has officially assumed the position of Chief Executive Officer (CEO) of Indra, following his appointment on May 26th, replacing José Vicente De Los Mozos, who had been at the helm of the company for nearly three years.
In turn, Airtificial has reported that, through its Aerospace & Defense division, it will produce 800 components at its Jerez de la Frontera (Cádiz) plant for the four Airbus C295 military transport aircraft acquired by Thailand. Its shares ended the day with a gain of 3.52%.
Within the Ibex 35, the most notable upticks were those of Acciona (+4.53%), Acciona Energía (+3.38%), Bankinter (+2.83%), Caixabank (+2.64%), and Unicaja (+2.63%). On the other hand, ArcelorMittal (-2.4%) led the declines, ahead of Fluidra (-1.44%), Colonial (-1.05%), Grifols (-0.51%), and Cellnex (-0.42%).
In the rest of the continent's major markets, most concluded in positive territory, with the exception of the French CAC 40, which fell by 0.2%. The FTSE 100 in London added 0.14%; the Dax in Frankfurt, 0.1%; the FTSE MIB in Milan, 0.31%; and the Euro Stoxx 50, 0.68%.
Fixed Income, Currencies, and Safe-Haven Assets
In the sovereign debt market, the yield on the Spanish 10-year bond fell to 3.341%, compared to 3.346% at Tuesday's close, reducing the risk premium against the German bond to 41.78 basis points.
In the foreign exchange market, the euro was down 0.14% against the dollar, settling at an exchange rate of 1.1592 'greenbacks'.
Regarding assets considered 'safe havens' during periods of high volatility, the ounce of gold remained stable around $4,350 at the close of the European session, while bitcoin traded around 65,000 'greenbacks'.