The Ibex-35 ends its bullish streak with drops that take the selection away from 8,400 points
The bullish streak is over. After six straight sessions of gains, the Ibex-35 is losing nearly 1%, a departure from the 8,400 points it managed to regain last week, on a day marked by riots against restrictions in China over new coronavirus cases.
Investors fear the Asian giant’s strict ‘Covid zero’ policy will eventually take a heavy toll on global demand and help slow the economic recovery. As Link Securities analysts explain, the protests in several Chinese cities against the government’s policies have caused “confusion” in the markets.
“The main problem is that investors do not know how to exert influence, not knowing what the reaction of the authorities will be and, since money is afraid, until the situation is clarified, the market will take a cautious attitude, which will lead to the reduction of positions in assets with the highest risk and probably a bet on the most defensive assets,” the experts indicate in their daily analysis.
Against this backdrop, only three stocks registered gains in Ibex mid-session: Rovi (+1.18%), Grifols (+0.92%) and Banco Sabadell (+0.30%). The other falls presented, especially Mapfre (-4.41%), whose shares were traded today without entitlement to the dividend of 0.06 euros that will be paid on Wednesday. Behind them were Fluidra (-2.79%), Solaria (-2.50%), Repsol (-2.15%), Red Eléctrica (-2.06%), Acciona (-1.65%) and Naturgy ( -1.50%).
The oil price in particular is also being influenced by fears of a fall in global demand due to fears of a new slowdown in the Chinese economy. The Brent barrel, a benchmark in Europe, fell more than 3.5% midway through the session, endangering $81, while the US West Texas fell below $74.
It will be necessary to wait for the sessions to progress in order to verify a more defined trend in the market, which is already moving towards the latter part of the year, in which it seems that investors will try to reduce the accumulated losses. Everything will again depend on the central banks, whose monetary policy committees meet in mid-December to announce their last interest rate decision of the year.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
