Investors are taking advantage of the recent austerity measures to increase their positions ahead of new macro references
European stock markets aim to consolidate the recovery on a day when Wall Street returns to activity after Monday’s holiday. The days of rest after days of maximum tension in the markets have revived interest in risky assets, especially in the stocks that have suffered the most in recent sessions.
Against this background, the Ibex-35 xx
Investors are taking advantage of today’s few references to restore equity exposure. But caution is still very much in this buying mood. Especially in anticipation of the appearances of Federal Reserve (Fed) President Jerome Powell before the US Senate and Congress in the coming days.
The market will also have to wait until Thursday for new PMI data in the euro-zone and the US, data that is widely followed due to its early appearance and will provide new clues as to whether or not the economy is in danger of recession.
The president of the San Luis Federal Reserve, James Bullard, was bullish on a rally on the US economy yesterday, ruling out a possible recession, something that could encourage investors.
Lower tension in equity markets is also supported by an improvement in debt markets, where bond yields (moving inversely with price) are gradually shifting from recent highs.
Specifically, the 10-year German bond yields around 1.68%, while that of the Spanish bond of the same maturity is sometimes below 2.8%, of the 3% it exceeded in the toughest last week. The situation is repeating itself on the other side of the Atlantic, with the yield on the 10-year US bond coming in at 3.3%, from 3.5% that came close to the highest since 2011 a few days ago.
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.
