The downward wave of Wall Street and Asia reaches, in a more moderate way, Europe. The economic alerts are reactivated, and risk aversion plans again in the markets. The Ibex cuts a streak of four rises.
A setback of 4% in the S
Recession fears are gaining strength again, and with it, concern about the evolution of consumption. Behind the historical figures for inflation lie price increases that are especially noteworthy in energy and food, a situation that, together with the increase in financing costs, threatens to reduce the purchasing power of consumers. The results and forecasts published yesterday by the US retailer Target plunged its shares by 25% and triggered alerts about falling margins and a possible brake on consumption.
The bearish wave of Wall Street has continued this morning in Asia, although in a more moderate way. The Tokyo Nikkei has deflated by 1.92% at the close, while in China the declines have been minimized thanks to expectations of a greater economic recovery with the progressive withdrawal of the Covid confinements decreed in large cities such as Shanghai.
Europe is dragged into the red, and the Spanish stock market cuts the streak of four consecutive rises that it had linked. In yesterday’s session it already collided with 8,500 points, and suffered to avoid cuts (0.01% at closing). In today’s sales surge again and threaten to push the Ibex back towards the level of 8,400 points.
The rest of the European stock markets feel the downward pressure coming from Asia and Wall Street. Monetary and economic threats could take a toll on consumption sooner than anticipated, while inflation is steadily pressuring profit margins. Today’s falls erase levels such as the 14,000 points of the German Dax and the 24,000 points of the Italian Mib.
The companies most linked to raw materials are watching the lurches in the price of oil. Yesterday’s corrective amid the resurgence of macro alerts gives way to a timid rebound in today’s session. Easing restrictions in China are encouraging prospects for crude demand, and the possible embargo on Russian oil keeps pressure on supply. The barrel of Brent and the West Texas type, after reaching parity in recent days, share a price of 110 dollars.
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