Strength in US employment, weakness in IBEX 35

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The IBEX 35 fell sharply this Friday by 1.58%, losing 11,000 points, weighed down by large values, with Telefónica and BBVA losing more than 2%, all of which closed in the red, except for Repsol, after the unemployment rate in the United States States fell a tenth to 3.8% in March compared to February, while job creation remained steady at a time when the Federal Reserve (Fed) has expressed reluctance to cut interest rates and is more likely to increase this data a strength of the economy rather than a weakness.

The IBEX 35, the main index of the Spanish stock market, fell by 174.9 points or 1.58% to 10,916 points, despite recording an increase of 8.06% over the year. As the euro rose to $1,083, the rest of European stock markets closed this Friday with declines. Milan lost 1.29%; Frankfurt, 1.24%; Paris 1.11% and London 0.81%.

The stock market began with losses that widened as the session progressed, in line with the rest of major European stock markets and despite Wall Street’s green opening after the three major indexes, hit by comments, closed negative on Thursday from several Fed- Members who weakened their forecasts for interest rate cuts.

Unlike Europe, Wall Street is picking up on the positive portion of employment data in the United States, which points to a strong economy

Wall Street’s early increases came after new U.S. labor market data was released that showed the country’s unemployment rate fell by a tenth to 3.8% in March compared to February, as job creation continued strong

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These indicators show that the country’s labor market remains strong, which experts say raises doubts about possible interest rate cuts by the Fed.

In a context where investors are waiting for the ECB’s Governing Council to meet in Frankfurt next week, with interest rates in the euro zone expected to remain at 4.5%.

The other two stocks that closed positively were Laboratorios Rovi, which led the increases with a rise of 1.11%, and Unicaja, which rose by 0.51%.

New penalty for “Acciona” on the IBEX 35

On the loss side, Accionar Energía was the stock that fell the most, with a loss of 4.68%, followed by Acciona, down 4.02%, and Naturgy, with 3.2%.

In the commodity market, Brent oil, the benchmark in Europe, continued its upward trend and reached its highest level of the year at $91.62 during the session and rose by 1.01% at the end of the trading session. The barrel costs $91.58.

In the debt market, the Spanish ten-year bond rose 4.4 basis points to a yield of 3.23%.

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