Saturday , November 28 2020

Near European places are mixed online with the banking sector



Mixed trends apply at the close of operations stock market in Europe, in the international context waiting before the Federal Reserve meeting in the United States and the behavior of the banking sector.

The mood was upbeat before the release of the Federal Reserve meeting, while the dollar strengthened from two-and-a-half week lows the day before, when Democrats took over the House, reducing hopes of the next big fiscal stimulus for the US economy.

Some markets reached a one-month maximum thanks to solid results from SocGen, Commerzbank and Sodexho, which calmed concerns about slowing corporate profits.
Its shares rose to close 2.14, 5.17 and 5.58 percent.

The European Stoxx Index rose to 0.19 percent, to 367.08 units, while the FTSE from the London Stock Exchange rose 0.33 percent, to settle at 7 thousand 140.68 units; The Swiss SMI ended 0.42 percent higher at 9,106.50 units; Lisbon PSI rose 0.11 percent, to 5 thousand units 020.71 and Ibex-35 Madrid which rose 0.1 percent, to 9 thousand 177 units.

In contrast, the Mibtel Milan index showed the worst performance when it fell 0.57 percent to 19,429.14 units, followed by Frankfurt's DAX-40 which fell 0.45 percent to 11,527.32 units.

The market seems to like that power is shared between Democrats and Republicans, and in fact, JP Morgan strategists remember on Thursday that the results were the best for the stock market.

When power in the United States is divided, investors speculate that there will be little legislative changes, which implies that there will be no resignation on important issues such as tax reform or deregulation.

The situation is that President Donald Trump must open negotiations with the opposition to approve certain steps, for example, aggressive tax reduction will be nuanced, which can delay the increase in interest rates.

The shares of Spanish banks showed a mixed trend after several people paid off billions of euros in taxes. The euro recovered when data showed that German industrial production surged in September.

Bankia and Sabadell shares rose about half a percentage point, while two large banks. Santander and BBVA fell 0.08 and 0.51 percent, respectively.

In the United States, the Federal Reserve (Fed) decision regarding interest rates will be known later. Although no changes are expected, investors will be wary of any signals that anticipate the direction of monetary policy in 2019.

Experts indicate that the Fed's Open Market Committee (FOMC) will raise the benchmark interest rate again at the December meeting.

However, according to Link Securities, it would be interesting to examine the "tone" of the statement issued by the committee after today's meeting to determine whether its intention, because everything seems, is to continue raising interest rates at the same level during the next exercise.

On currency markets, the euro rose against the dollar and traded at 1.1434 units.

With information from Reuters, Notimex and Bloomberg.


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