2023-09-26 18:55:00
Caution once again dominates trading on European stock markets, given the messages that suggest that interest rates will remain high for a long time. A possibility that central banks have been warning about for some time, but that the market had at times ruled out.
Now, when that perspective is more real than ever, sales prevail and the Ibex-35 is chaining its fourth downward session. Four days in which it has gone from trading above 9,600 points to being on the verge of losing 9,300. Specifically, the selective fell 0.2% on Tuesday to 9,366 points.
CaixaBank led the selective, advancing 2.24%, ahead of Bankinter (+1.83%), Redeia (+1.16%), Acerinox (+0.56%), IAG (+0.56%), and Merlin (+0.51%). On the opposite side were Fluidra (-1.84%), Cellnex (-1.58%), Indra (-1.30%), Repsol (-1.25%), Sacyr (-1.14%) and Solaria (-0.98%).
The rest of the European stock markets have also suffered falls due to the prospect of high interest rates that is being felt especially in the debt markets, where financing costs have skyrocketed at a time when fear of a slowdown is more present than ever.
The withdrawal of investors from this market puts downward pressure on the price of bonds, raising the required return (which moves inversely). Thus, the ten-year US bond registers a maximum interest rate since 2007, above 4.55%, while that of the 10-year German bond exceeds 2.80%. The profitability of the Spanish bond for the same term is already close to 3.9%, highest since 2014.
Meanwhile, in the raw materials market, a barrel of Brent oil – the benchmark in Europe – remains close to $94, while US West Texas rises to $90.45.
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