The resistance of the economy gives way to falls in the Stock Market

by time news

The European stock markets have recovered their normal activity after the holiday on Monday on Wall Street. Finally, the red numbers prevailed in the Spanish selective with falls of 0.3% for the Ibex-35, which returns to levels closer to 9,200 points in a session marked again by business results.

In this way, Rovi has led the increases at the close, with a revaluation of 5.79%, followed by Grifols (+1.09%), Enagás (+0.92%), Banco Sabadell (+0.89%) and Red Eléctrica (+0.68%).

Behind were Logista (-4.08%), whose shares are listed as of today without the option of the dividend that will be paid this Thursday, Naturgy (-2.90%), Fluidra (-2.41%), Colonial (- 2.05%), Amadeus (-1.50%) and Repsol (-1.50%).

In the rest of the European markets, the Italian FTSE MIB has contracted 0.68%, while the German DAX has closed with a fall of 0.52%, the English FTSE 100, 0.46% and the French CAC40 , of 0.37%.

macro force

In addition to business results, investor sentiment is being influenced these days by an avalanche of macroeconomic benchmarks which, with a few exceptions, show great resilience in the euro zone economy. For example, this Tuesday the data for the composite PMI for the euro zone for February were released, which beat all expectations by improving to 52.3 points, a nine-month high and well above the 50.6 points expected by the consensus.

The problem? That this strength of the economy supports the increasingly numerous voices that suggest that central banks may be more aggressive in their fight against inflation. The market is now expecting a further rise in interest rates of 50 basis points from the European Central Bank (ECB). But the greatest interest is diverted to the US, where few already expect that March will be the last rise of the Federal Reserve (Fed).

The consensus is increasingly clear: there will be higher rates for longer. And that translates, once again, into fear that this scenario could lead to the dreaded recession at the end of the year.

Against this backdrop, the debt markets are once again in turmoil. Investors opt for the sale of bonds, pushing prices down and triggering returns (which move inversely). In the US, the interest on the 10-year US bond already exceeds 3.87%, while in Spain, the same-term paper beats 3.545%.

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