The Ibex-35 remains above 1% as the euro loses parity with the dollar again
Investors are reaping their rewards after a summer of gains. The recent rally in world stock markets is giving way to a timely correction. But it won’t be until the end of the week, with the start of the central bankers’ meeting in Jackson Hole, that the markets can take a clearer course.
It’s the big date of summer. Especially in a year marked by the tightening of monetary policy in Europe and the US and with enormous uncertainty about the future of interest rate hikes given the risk that the fight against inflation will eventually lead to an economic recession, especially in Europe.
This perspective was precisely the perspective that led the euro to lose its parity with the dollar again this Monday. Specifically, the single currency fell to $0.9992 in the first hour, although it has reached equilibrium again ‘one by one’ after the stock markets opened.
According to Link Securities analysts, the depth of the cuts will largely depend on what Jackson Hole central bankers say about inflation, the labor market, economic growth and their monetary policy intentions, “which will shape the near-term future of Western financial markets: currencies, bonds and stocks”.
In anticipation of the important meeting, the Ibex-35 extends losses this Monday, leaving more than 1%. The selective thus falls below 8,300 points, with the values most related to the cycle and the evolution of commodities leading the declines.
Acerinox loses more than 4%, while ArcelorMittal loses 3.7%. Banks are also contributing to the red numbers, with losses of 3.4% for BBVA and more than 2% for Bankinter and Banco Santander. CaixaBank and Sabadell, for their part, also lost more than 1.5%.
The energy companies are avoiding the downward blow, but with limited increases that barely exceed 0.7% in Naturgy, the value that is at the top, on a day when the gas price has bounced back to a new maximum of 285 euros per megawatt hour.
In the futures markets, the oil price continues its downward path, with a further decline of 0.5%, leaving the price of Brent, a benchmark in Europe, at $96.13. US West Texas, for its part, is below $90.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
