Spain's Ibex 35 Rises 1% Despite Fed Interest Rate Hike
Listen to the story
Spain's main stock index, the Ibex 35, rose by 1% on Wednesday, climbing back above the 19,800-point mark. The gain came shortly after the US Federal Reserve announced an increase in interest rates.
Central bank decisions like this often affect investor confidence around the world. Higher rates can make it more expensive to borrow money, which sometimes causes stock markets to fall. However, the Ibex 35 avoided that pattern and moved higher instead.
Financial commentators described the Spanish market as unshaken by the Fed's move, noting that Spain's index 'did not let itself be intimidated' by the decision. This suggests that investors in Spain reacted calmly rather than pulling money out of the market.
At the same time, oil prices dropped to $103 a barrel. Oil prices and interest rates are often linked, since both can influence how much companies spend and earn.
Live coverage of the trading session tracked these movements throughout the day, following both the Ibex 35's performance and wider reaction to the Fed's monetary policy announcement.
Markets in Europe are often sensitive to decisions made by the Federal Reserve, since the US economy has a strong influence on global finance. Analysts will likely continue watching how European indexes respond in the coming days.
For now, the Ibex 35's rise suggests that Spanish investors saw the interest rate hike as manageable rather than alarming, at least in the short term.
Vocabulary7 words
- stock index
- a number showing how a group of company shares is performing
- Federal Reserve
- the central bank that controls money in the United States
- interest rates
- the price charged for borrowing money
- investor
- a person or group that puts money into companies or markets
- oil prices
- the cost of buying oil
- barrel
- a standard unit used to measure amounts of oil
- monetary policy
- decisions a central bank makes about money and interest rates
Quiz
Answer key
1. 1% 2. An increase in interest rates 3. They fell to $103 a barrel
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Spain's main _____, the Ibex 35, rose by _____ on Wednesday, climbing back above the 19,800-point mark. The gain came shortly after the US _____ announced an increase in _____.
Central bank decisions like this often affect _____ confidence around the world. Higher rates can make it more expensive to borrow money, which sometimes causes stock markets to fall. However, the Ibex 35 avoided that pattern and moved higher instead.
Financial commentators described the Spanish market as unshaken by the Fed's move, noting that Spain's index 'did not let itself be intimidated' by the decision.
At the same time, _____ dropped to $103 a _____.
Live coverage of the trading session tracked these movements throughout the day, following both the Ibex 35's performance and wider reaction to the Fed's _____ announcement.
Discussion questions
- Why might a central bank's interest rate decision affect stock markets in other countries?
- Why do you think the Ibex 35 rose instead of falling after the Fed's announcement?
- How could higher interest rates affect ordinary people, not just investors?
- Why might oil prices and interest rates be connected?