If there is one conclusion that has become evident in recent weeks of trading on the equity market, it is that the uncontrolled inflation is much more worrying than the damage that raising the price of money does to the economy. Yesterday, the main stock markets in Europe and , suffered a severe bearish attack after knowing that inflation is resisting in the US, since the .
Yesterday’s falls in the main Wall Street indexes, and those that are expected to take place in today’s session in Europe show that the supports facing the continental market must be watched again.
In this sense, one must This is confirmed by Joan Cabrero, technical analyst and adviser to , who assures that the 3,450 points of the are key, “although it is true that if they are transferred I want to see what happens in the key support that the DAX presents at 12,400 points”.
And it is that, the German selective has shown itself incapable of beating the bearish guideline that had been guiding the corrective phase in a millimetric way since the highs of the year, which is currently running at 13,700 points, making clear, in a certain way, an inability on the part of the bulls to manage to maintain the pulse.
In the case of , the key level to watch is at 7,765 points, which “is the key support that can never be lost if we want to continue trusting in a bullish context without first going through a fall to 7,287/7,000 points”. Cabrero highlights.
Does the barrel of oil discount a recession?
As soon as the inflation data was released in the US, the price of a barrel of oil -the reference price in the US and Europe- registered drops that show the concern of investors and analysts in the face of a hypothetical recession in the main economic powers of the planet. And it is that, the difficulties to stop the advance of inflation only increase the forecasts of a greater rise in interest rates by central banks in order to cool their economies so that the CPI stops escalating. In fact, the market is even beginning to position itself in favor of a rate hike of 100 basis points instead of the 75 that were being discounted up to now.
In this sense, the Brent barrel accumulates its fourth consecutive month of declines in September, already trading almost 4% below the prices at which the month began. The West Texas price is in a similar situation and remains below $90 per barrel.
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