The selective loses more than 1% ahead of new macroeconomic references like final US first quarter GDP data
Caution is returning to global financial markets after the setback that Wall Street suffered Tuesday night, where reds dominated strongly after learning of a worse-than-expected decline in consumer confidence.
We will have to wait until Wall Street opens to observe a more defined trend in European stock markets. But for now, the Ibex-35 falls more than 1%, losing the 8,300 recaptured Tuesday. Declines that accelerated in the first negotiating bars after learning about June inflation data in Spain have soared to a maximum of 10.2% since 1985.
Investors remain very alert to the annual meeting that the European Central Bank (ECB) is holding in Sintra (Portugal) these days. The organisation’s president, Christine Lagarde, took a breather yesterday by confirming that fighting inflation is now a top priority and that the institution will be more aggressive, if necessary, in the new cycle of rate hikes.
However, this strength was accompanied by a calm message for the debt markets and especially the risk premiums of the peripheral countries. Notably, Lagarde noted that progress is being made on the so-called anti-fragmentation mechanism, while confirming that bond purchases will begin on Friday, July 1, as part of the PEPP program maturities reinvestment plan (launched during the pandemic). .
Not too much news is expected in Sintra this Wednesday, when Fed President Jerome Powell will also speak, coinciding with the release of the latest revision of US GDP for the first quarter. The forecast indicates that the data will remain in the -1.5% range indicated by the previous forecast.
Meanwhile, in the commodities market, oil prices are taking a breather with a slight drop of 0.5%, bringing a barrel of Brent oil, a benchmark in Europe, to $113. For its part, US West Texas is trading at $111.
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.
