Investors remain cautious without the support of macroeconomic data
Bad feelings on the European stock markets. The unstoppable rise in gas prices in light of the risk of a Russian supply constraint weighs heavily on investor sentiment.
The prediction that all this energy chaos will lead to the dreaded recession is keeping risky assets on the run and the reds dominated global stock markets on Tuesday. The Ibex-35 lost another 0.71% and led the falls in Europe. And on Wednesday, the game will be played to keep the 8,226 points that managed to hold on despite the drops thanks to the gains of Acerinox (+3.82%), Repsol (+3.63%), Arcelormittal (+3.15% ), Banco Sabadell (+1.46%) and BBVA (+0.76%).
Increases not sufficient to offset the losses of Cellnex (-3.59%), Grifols (-3.15%), Rovi (-2.79%), Fluidra (-2.77%) and Acciona (-2, 09%).
Sales accelerated after data from the Euro-zone Composite Purchasing Managers’ Indexes (PMI) was released, showing that the deterioration in economic activity intensified in August. Notably, the index fell from 49.9 points in July to 49.2 points, its worst reading in 18 months, pointing to a contraction in growth in the third quarter.
Without support from macroeconomic data, investors have no choice but to opt for caution in anticipation of the week’s key event: the central bankers’ meeting in Jackson Hole, where new clues are expected about the future of the ECB’s monetary policy and the US Fed.
Both organizations play a lot in their speeches. It should be remembered that last year, at the same meeting, all those present defended their predictions for temporary inflation, which has finally become the main concern not only of the market, but also of states and consumers.
In the commodities market, the price of a barrel of Brent, a benchmark in Europe, left its downward path to rise more than 3.5% to $99.61, while West Texas is trading at $93.62 ahead of a possible production cut by OPEC.
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.
