The Ibex-35 heads the falls in Europe ahead of OPEC meeting
Selling returns to European equity markets after two sessions of strong gains and the Ibex-35 is down more than 1% after its best session in seven months. The selective is in the bowl of the parquet floors of the Old Continent after knowing that private sector activity contracted in September for the first time since January.
In particular, the Composite Purchasing Managers Index (PMI) fell from 50.5 points in August to 48.4 points. It is the worst reading since the beginning of the year and is below the 50 mark that marks the gap between expansion and contraction, with a notable decline in orders.
Despite this poorer performance, red dominates all markets in anticipation of the most important event of the day: the OPEC meeting in which, predictably, the countries making up the organization will decide to sharply cut crude oil production in order to boost prices. keep it around 90. dollars.
Currently, the price of a barrel of Brent oil, a benchmark in Europe, remains slightly above $91, while that of West Texas in the United States remains stable at $86.
Added to all this is the fact that many investors, especially short-term investors, have taken advantage of the recent uptick to take profits, while others, the more cautious, are reducing their exposure to the equity markets.
That’s how Link Securities’ analytics department sees it, which warns in its daily report that the market’s recent recovery won’t be final. Or at least not enough to get western stock markets out of the current bear market, “as the macroeconomic and geopolitical scenario does not lead to optimism.”
In this environment, they advise waiting until the new quarterly results presentation season progresses to draw more realistic conclusions about how the current scenario could affect the expectations of publicly traded companies.
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.
