In recent hours, the market has had to face the resurgence of two fronts that it had already opened in recent months: the war in Ukraine and the rise in the price of money in one of the main economic engines on the planet, the US.
The threat of Russian President Vladimir Putin to respond to the “blackmail” of the West with all his arsenal (together with the announcement of a partial mobilization of its population to “liberate” Donbas), and the nervousness that it generated in the first hours of the session the discounted rise in interest rates by the Fed put the stock markets of the Old Continent in check at the opening, to the point of leading them to give up for a few moments the supports that have supported indices such as the Dax, the EuroStoxx 50 or even the Ibex 35 in the last few months.
In spite of everything, the selling pressure seen in the European markets failed to cause the loss of the support presented by the EuroStoxx 50 in the 3,450 pointswhich is the level that has been pointed out by Ecotrader as key in the upward trend of the continental stock markets in the coming weeks.
In addition, the German Dax also remained above the 12,400 points and the Ibex 35 managed to remain above the key support of the 7,765 pointswhich are other references that are watched in Europe since their transfer would open the door to falls of 10%.
“As long as they are not lost, the chances that we can witness an upward counterattack will remain intact, without prejudice to the fact that for us to trust it, it is necessary for the Spanish selective to overcome the resistance of 8,350 points, which is where the bearish guideline that arises from uniting the highs of May and August, and the Dax 40 the 13,570 points”, clarifies Joan Cabrero, technical analyst and advisor to Ecotrader.
The most bullish sector of the day in the Old Continent was the electric, with increases close to 2%. Among its most bullish components stood out Fortum, with more than 9% rise, Drax Group, with 4.8% and Orsted, with almost 4%. This sector has been followed by the oil tanker, despite the fact that, in the middle of the session, crude oil dropped close to one percentage point, losing again the 90 dollars per barrel of Brentthus erasing the earnings from the beginning of the session.
has already been discounted
In the fixed income market, the highlight is that in the main references on both sides of the Atlantic there were purchases, lowering the required returns from the latest highs, which in the case of T-Note is around 3.5% and around 3.5% bundle German about 1.9%.
From here it can be interpreted either that the market was pointing to the fact that the rate hike by the Federal Reserve was finally going to be 75 points or that it had already been discounted in its price that Jerome Powell’s people were finally going to raise the price of money at 100 basis points.
Finally, despite the fact that the euro traded flat in its cross against the dollar during the entire half of the day, it ended up depreciating almost one percentage point with respect to the greenback, thus falling to new lows not seen in the last two decades.
The Russian stock market falls 12% in 2 days
Beyond the Federal Reserve, the big news of the week is the movement of pieces in the Ukraine war by Russia, something that the market is interpreting in many ways but that is having a bearish effect on the stock market for companies listed in the country presided over by Vladimir Putin. Specific. its reference index is left 12% in the last two days, falling to lows in early August. However, the ruble remains stable and is still up 22% on the year.