The Capricorn is stuck below 8,100 points despite pressure from the banks and Telefónica
Maximum caution on European stock markets at the beginning of August, with geopolitical tensions returning to the fore. And this time it’s not about the war in Ukraine.
The visit planned by US House of Representatives President Nancy Pelosi to Taiwan has reignited the crisis between the country and China, with authorities in Beijing threatening possible repercussions if reports of the self-management of the island, over which the Asian giant declares his sovereignty.
The declines in Asian stock markets are shifting to the Old Continent, with more moderate losses for the Ibex-35, which was the worst pick in Europe on Monday. In concrete terms, the decreases are limited to 0.2%. But the indicator is still below 8,100 points. And that has the support of banks in this session, with increases of 2.5% for CaixaBank and Banco Sabadell, in addition to other major stocks such as Telefónica, which advance 1.3%.
At the bottom of the table, Fluidra again stands out with a drop of more than 5%, while tourism companies and steel companies are also experiencing pressure. The losses are over 2.5% at IAG or 1.5% at ArcelorMittal.
Another big protagonist of the day is Siemens Gamesa, which continues to limit its declines to 0.5% after publishing heavy losses of 1,226 million euros in the first nine months of its fiscal year. This figure more than triples the ‘red figures’ of 368 million euros that the group had registered a year ago.
The greater risk aversion is being felt in the fixed income markets. Investors buy bonds again, causing their price to rise and their yields to fall (which moves in the opposite direction). Specifically, the yield on the 10-year German bond, the main European benchmark, fell 7% on Tuesday to 0.71%.
For its part, the Spanish bond yielded up to 1.82% at the same maturity, already far from the 3% it still reached at the end of June and with a risk premium of 108 basis points.
In the commodities market, the oil price continues to fall, with the Brent rate (reference in Europe) back below USD 100, while the US West Texas exchange rate is around USD 93.
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.
