European markets continue to lose ground on weak economic expectations
The Ibex-35 deepened its decline to 0.84% in this Tuesday’s session, dropping it to the 7,500 point level, in an environment still marked by central bank messages in the inflation scenario and fears for an economic recession.
The squad ended the trading day at 7,445 points, with Sabadell (-6.47%), Grifols (-4.98%), Merlin (-3.3%), Bankinter (-3.26%), Colonial (-2 .85%) and Santander (-2.62). %) at the head of the declines. On the upside, Acerinox (+2.63%), Solaria (+2.41%), Repsol (+2.38%), Cellnex (+2.35%) and Rovi (+2.07%) stood out .
In the United States, consumer confidence has recovered more than expected and has returned to April 2022 figures. Analysts at Bankinter point out that the market will read negative as “it shows the strength of consumption and the tone” hawkish’ from the Fed, showing that there is still room for action to keep inflation under control».
In Spain, the governor of the Bank of Spain, Pablo Hernández de Cos, expected last night that the agency plans to revise its estimates of economic growth in 2023 and raise its inflation forecasts for the years 2022, 2023 and 2024, in line with made for the eurozone.
The rest of the European stock markets also ended the session on a negative note, with declines of 0.52% in London, 0.27% in Paris, 0.72% in Frankfurt and 1.16% in Milan.
On the other hand, the price of a barrel of Brent oil, a benchmark for the old continent, stood at $86.38, up 2.76%, while Texas stood at $78.68 after a increase of 2.56% .
The pound rebounded this Tuesday after Bank of England Governor Andrew Bailey issued an extraordinary statement saying the authority he presides “will not hesitate to change interest rates as much as it takes to curb inflation.” towards the target of 2% sustainable in the medium term”.
After this message, the pound continued to reach $1.0784 (+0.94%). Between Friday and Monday, the pound fell nearly 8% in its cross against the dollar.
Finally, the price of the euro against the dollar was 0.9624 ‘greenbacks’, while the Spanish risk premium was 120 basis points and the required yield on the 10-year bond was 3.417%.
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.
