The Ibex 35 is left more than 2% due to the fear that the eurozone is already in recession

Central banks launch to raise rates and stock markets suffer. That has been the trend this week. The session this friday is not different and the main European indices extend the falls. The Ibex 35 rounds new annual lows.

Exactly, the national selective it yielded 2.33% and at noon it stood at 7,594.54 points. Losses have become greater. In any case, the Ibex 35 approaches the annual lows marked on March 7. That session fell to 7,510.4 integers, although it ended the day at 7,655.6.

The collapse of the Ibex 35 has already exceeded the 4% barrier in the weekly accumulated. If it ends like this, this would be the index’s worst week since Februarywhen the war in Ukraine began. The collapse then was 9.02%.

The selective Spanish has closed in red five of the last six weeks. Only Monday ended slightly higher (+0.11%). The sessions on Tuesday (-1.5%), Wednesday (-0.01%) and Thursday (-1.24%) ended with falls.

This Friday, only Siemens Gamesa, which added 0.11%, was spared the falls. The biggest losses were those of Grifols (4.18%), Acerinox (3.60%) and Rovi (3.55%).

[Consulte aquí las claves operativas del Ibex 35, según el analista Eduardo Bolinches]

The main event of the day was PMIscompiled by S&P Global and from which it can be deduced that the decline in business activity in the euro area worsened in September.

The euro bloc composite PMI, considered a good indicator of general economic health, it fell to 48.2 points in the seventh month of the year, from 48.9 in August. A recession looms in the eurozone“, warns Chris Williamson, head of S&P Global Market Intelligence.

“The third consecutive decline in the Eurozone PMI indicates that business activity has been contracting throughout the quarter. This confirms our view that the recession might have already started“, underline the experts of ING.

The figures have been mixed in Germany and France, while in the UK they have been worse than expected.

After the publication of these data, declines in European stock markets have widened. At noon, Frankfurt was down 2.09%; Paris, 1.93%; London, 1.82% and Milan, 2.73%. The Euro Stoxx 50 lost 2.16%.

[Los bancos españoles baten a los europeos en el mejor mes para el sector en bolsa desde febrero de 2021]

The closure with falls wall street. it also put pressure on the indices of the Old Continent. On Thursday, the Dow Jones was down 0.35%; the S&P 509, 0.84% ​​and the Nasdaq, 1.37%.

The main stock indices have digested with falls the aggressiveness shown by some of the world’s leading central banks.

The Federal Reserve United States (Fed) raised interest rates last Wednesday. He did it, for the third consecutive meeting, at 75 basis points. Since March, the total increase is 3 percentage points.

The trend is general. The Thursday, the Bank of England raised the price of money 50 basis points, while the Swiss National Bank put end eight years of negative interest rates.

Norway, Sweden and even the Philippines and Indonesia have increased the price of money in recent days. In virtually all of their communications, central banks have pointed to the need to to continue raising rates in the future with the aim of curbing the escalation in prices.

In this context, analysts at Link Securities do not see “in the short term, catalysts that can reverse the downtrend background that the European and US stock markets have adopted since the middle of last August, which may drive indices to retest their year lows”.

However, they do not rule outpunctual rallies in the marketsa consequence of the high level of overselling that many securities and indices present”.

The euro it moved away from the parity against the dollar and marks new minimums of the last 20 years when being exchanged at 0.975 ‘greenbacks’.

The brent oil it lost 3.08% and stood at 87.67 dollars per barrel. Despite the upward momentum brought about by Russia’s new military plans in Ukraine, the prospect of a slowdown in global demand for raw has continued to contain prices, according to analysts.

The 10-year Spanish bond interest rose to 3.15%, while the risk premium eased to 113.05 basis points.

Source: Elespanol

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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