Investors remain cautious on a day marked by the increased volatility that the ‘fourfold witch hour’ usually brings
It is official. Wall Street entered the bear market this week, as the downtrend is called, with the indices losing more than 20% from their previous highs, in this case last January. Despite the fact that futures will come with gains, caution will remain strong in investor sentiment amid a resurgence of panic that the central banks’ fight against inflation will eventually lead to a recession.
Much more so in a session characterized by the volatility usually presented by what is known as the “fourfold witch hour” on the third Friday of the last month of each quarter, when the simultaneous expiration of futures and options on indices and stocks occurs Place.
Against this background, the Ibex-35 xxx with accumulated losses until the end of Thursday of 3.71%. The absolute protagonist of the day will be Banco Santander, after announcing that it will appoint Héctor Grisis, the current CEO of Santander México, as the new CEO of the entity, replacing José Antonio Álvarez.
Experts agree that it is difficult to know if the worst for the market is over. “We will have to wait until next week to draw more solid conclusions about the state of Western stock markets after the recent sharp correction they experienced,” Link Securities analysts said.
“At the moment we dare not speak of investor capitulation, despite the sharp declines, as the contraction volumes have not been nearly as high as usual on those occasions,” they insist.
Meanwhile, the performance of the ECB with its emergency meeting this week on the debt market is keeping the profitability of the 10-year Spanish bond at bay. Specifically, the interest rate stands at 2.87%, below the 3% it has exceeded during the moments of greatest tension in recent days.
This drop will allow the national risk premium (difference between the return of the Spanish benchmark versus that of the 10-year German bond, which is considered the safest) to remain around 128 basis points, far from the 137-point basics you saw this week. have achieved.
In the commodities market, oil continues to trade at a high level, with a barrel of Brent, a benchmark in Europe, at around $119, while the US West Texas is around $117.
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.
