The Ibex 35, live | Pessimism on European stock markets after strong volatility in Asia | Financial markets

2024-10-08 07:02:33

What does the Ibex 35 do?

The Ibex fell by more than half a percentage point at the opening and lost the level of 11,700 points, affected by the negative closing on Wall Street and the high volatility on the Asian stock markets.

What are other stock markets doing?

Asian stock markets closed mostly lower, with Hong Kong leading the pack, despite efforts announced today by Beijing to “expand domestic demand” and “stabilize the real estate sector.” Standing out from this global behavior were Chinese stock markets, which opened today for the first time after being closed for a week to celebrate a local holiday, and whose indices ended the day with strong gains.

Wall Street closed this Monday in the red, penalized by the rise in the yield on American benchmark bonds to 4% and by the price of crude oil above 77 dollars. At the close of the New York Stock Exchange, the Dow Jones Industrial Average fell 0.94% and the tech Nasdaq lost 1.18%, to 17,923 wholes. The New York Stock Exchange remained cautious after closing in profit last week, awaiting new economic data and quarterly results from big banks starting on Friday.

The keys of the day

• The Treasury returns to the markets today with an auction of 3 and 9 month bonds. For 3-month bills, the reference is the marginal interest equal to 2.860% from the auction on 10 September, while in 9-month bills it is 3.027% of the same auction. The month of October will end with another auction, of Stocks and Bonds, scheduled for the 17th.
• Although the earnings season in the United States will begin with the publication of the accounts of the big banks, Pepsico’s results are published today on the other side of the Atlantic. Regarding the US results campaign, “an average earnings per share (EPS) improvement for the S&P 500 is estimated at 5%. In the second quarter of 2024 the EPS increase was 14% compared to 9% expected (before the publication of the first company) and in the first quarter 7.9% compared to 4.2% initially expected.”, they indicate from Bankinter.
• Among the most important macroeconomic data of the day, industrial production in Germany stands out, while data on the trade balance arrives in the United States.
• Insurers collaborating with Muface – the health insurance company for public employees and their families – hope that the Council of Ministers will approve the basis for providing this service in 2024 and 2025, a race that could be desertedthey warn, if its current allocation is not increased by at least 30%.

What do the analysts say?

Bankinter: “Israeli retaliation will be very harsh or compromise. But it will not be neutral for the market: it could affect it slightly for a few days, or severely for a long time. Taking this into account and the approach of the American elections, the most reasonable thing is to expect a phase of trickle of the stock markets… even if the good level of American employment last Friday, which reduces the fear of recession, will delay this trickle for a while. While.

From Renta 4 they explain China’s disappointment for not announcing new stimulus for the economy in the press conference held today. The CSI 300, after a week closed for the Golden Week holidays, opened with an initial rebound of 11% while awaiting news which, when none occurred, moderated the rise to 3%. For its part, the Hang Seng, which was not closed last week, fell by 8%, slowing down the rally of recent weeks, unsustainable in the absence of new stimuli, especially of a fiscal nature, to complement the monetary action . those already announced.

What is the evolution of debt, currencies and commodities?

Oil prices fell today, partly reflecting developments in China, although this was also due to a slight decline from a strong rally earlier in the week on developments in the Middle East. Hezbollah fired rockets into Haifa and Israel appeared poised to expand its offensive into Lebanon.

A barrel of Brent crude, the benchmark in Europe, fell 1.5%, to $79.69, while West Texas fell 1.5%, to $75. Concerns over oil supply disruptions have sent Brent and U.S. crude futures higher by more than 10% this month, and appear unlikely to reverse course anytime soon.

The euro rises slightly to $1.0988.

The yield on the 10-year Spanish bond drops to around 3%.

Stock Markets – Currencies – Debt – Interest Rates – Commodities