Sabadell-BBVA Merger Boosts Spanish Stock Market, But Fed Rates Keep Prices High.

Ibex Index sees 0.38% growth as Sabadell soars 6.6% following merger announcement with BBVA

On Thursday, the Spanish stock market saw gains on the Ibex 35, driven by Banco Sabadell’s response to BBVA’s exchange offer for a merger. The selective opened at 10,896 points and increased by 0.38%, leaving behind the losses suffered in the previous session. Banco Sabadell led the gains on the Ibex 35, with an initial increase of 8% that later stood at 6.65%.

BBVA offered Banco Sabadell a share exchange with a 30% premium, leading to significant movements in the stock market. Other companies also saw increases on the Spanish selective, including Aena, Solaria, Unicaja Banco, and Grifols. Rovi and Repsol were among those facing losses.

The Fed’s message on Wednesday left rates unchanged and hinted at a delay in the cuts schedule, which is expected to keep prices high for longer than anticipated. The barrel of Brent traded with increases, while there were slight changes in the yield on the 10-year Spanish bond and the euro.

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