Signs of weakness from China are beginning to make investors nervous about the prospect of global congestion
The Ibex-35 increased its losses to 2.2% at the end of the session on Monday, falling to 8,139 points, the lowest level since the beginning of March, in a week still marked by the evolution of the war in Ukraine, infections in China and its impact on the Asian country’s economy and inflation.
The only asset that managed to close the trading session in “green” is Sabadell, leading 0.06%, while the biggest declines were recorded by Almirall (-11.4%), Repsol (-8, 53%), Grifols (-6.85%), Fluidra (-6.51%), Siemens Gamesa (-6.17%) and Rovi (-5.42%). Almirall has presented the aforementioned collapse after announcing that it earned 20.4 million euros in the first quarter of the year, 31.5% less than in the same period of 2021.
It was announced Monday that Chinese exports fell 0.9% in April, while foreign purchases fell nearly 3%, implying a stagnation of imports from China in the year-on-year comparison. Analysts believe these numbers are signs of a worsening global cycle and supply chain problems in the face of lockdowns to stop the new wave of coronavirus.
Investors will also be aware this week of CPI data in China, out of the United States and that confirmed in the Eurozone, as well as corporate earnings and the appearance of European Central Bank (ECB) President Christine Lagarde, next Wednesday.
In this scenario, the rest of the European stock markets also ended the day with declines, 2.32% in London, 2.75% in Paris, 2.15% in Frankfurt and 2.74% in Milan.
The price of a barrel of Brent crude, a benchmark for Europe, came in at USD 106.24, down 5.47%, while the barrel of WTI, a benchmark for the United States, fell by 5.75. % fell to $103.46.
Finally, the price of the euro against the dollar stood at 1.0544 ‘greenbacks’. The depreciation of the community currency against the US currency also exacerbates the eurozone’s inflation problems, as much of the supply is bought up in dollars. For its part, the Spanish risk premium was 112 basis points, while the required yield on the 10-year bond was 2.207%.
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.
