The fear of recession is shaking the markets and yesterday the european bags closed with heavy losses, close to 3%. Today, they rebounded more than 1% at the open. The euro remained at a 20-year low against the dollar and oil prices, which had fallen by 10% the day before, recovered more than 2%.
The IBEX 35 1% is marked and recovers the 8,000 point level it lost yesterday after falling 2.48%, the biggest drop since June 12 last year. The selective accumulates an annual decline of 7.5%. Within the Spanish index, IAG is the stock that is progressing the most, 3%. It is followed by Inditex, which adds 2.5%, and Meliá Hotels, which gains 2%. No values are shown in red.
Yesterday, Wall Street closed mixed on investor concerns over a possible recession in the US as the local market seeks to rally after a tough first half. Uncertainties over economic growth are weighing on investors as the US market appears to be recovering after a tough first half. US stocks tend to do well in July, according to history, but this year investors expect more bearish data. Today, the Federal Reserve (Fed) minutes are released. Wall Street futures are pricing in modest gains.
In the foreign exchange market, the euro it is plunging to new 20-year lows against the dollar, as investors pull away from the greenback, as always happens when fears of a possible recession arise. The euro, which has been depreciating for months due to the interest rate differential (the Fed has already hiked rates twice and the ECB has not yet), fell to $1,023, its lowest since December 2002 and very close to parity.
The alarms were triggered yesterday after the release of the Eurozone PMI which, although growing, has slowed markedly and points to an economic decline.
High inflation, accentuated by the war in Ukraine and the sanctions against Russia, and interest rate hikes by central banks are holding the economy back and many investors fear that this strategy could end up causing a recession.
This possibility has had an impact on the price of the Oil in the face of weaker demand forecasts. Yesterday, Brent, the benchmark in Europe, fell by almost 10% at the close of trading in Europe, to 102 dollars a barrel, a price not seen since May 11. Today it recovers 1% to 103.79 dollars a barrel.
For his part, the natural gas fall 8% to 152 euros per megawatt hour after the Norwegian government ended the strike in the oil and gas industry, proposing mandatory wage arbitration to resolve the collective bargaining dispute between the Lederne union and the Norwegian organization Oil and Gas. Yesterday, the price of gas reached 175 euros per megawatt hour (MWh), a maximum in four months, due to fears of a reduction in supply from Russia, according to Bloomberg data collected by Efe.
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