The selective is supported by the gains in Wall Street to consolidate the 8,100 points. Indra drops 10% after government takeover
European stocks are holding on to the gains on Wall Street to try to minimize losses from a week, which was much quieter than the last, however. Investors are waiting for new references that will help assess whether fears of an economic recession that are still strong in the market are well founded.
The Ibex-35 starts with gains of 0.3% to 8,130 points, looking for the 8,145 it shot last week. However, it remains a long way from the 8,286 points that marked Monday’s maximum close.
Within the national trading floor, investors remain alert to the weekly shutdown of electricity companies, which leave more than €4,000 million in market capitalization since it was confirmed that the government will approve an additional tax on the sector. On Friday, these companies are trying to gain ground by leading the advance of the Spanish stock market.
Much of the improved buying mood that emerged a few days ago is due to the lower tension in debt markets. Investors have returned to buying fixed income to protect their portfolios from fears of an economic slowdown. This buying move drives up the price of the bonds and lowers their profitability (which moves inversely.
And while bond yields are picking up again this Friday, the decline is noticeable over the course of the week. Ten-year Spanish bond yields, for example, are moving by 2.5%, far from the 2.9% where they sometimes came close in previous days. At the same time, the German ‘bund’ rose today from 1.77% to 1.44%.
One of the key indicators of these moves was the composite PMI released on Thursday, with a sharp puncture deflating the indicator (one of the most followed by the market due to its early nature) to a stand of 51.9 points, from last month’s 54.8 points and well below the expected 54.1.
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.
