The main indices of the Old Continent will start this Thursday with falls. The Ibex loses 0.7% in the first steps of the day while the EuroStoxx loses more than 1%. Thus, the losses seen in the European stock market since the beginning of the week and the very close of the Asian markets this Thursday are continued.
The EuroStoxx 50 has had four negative sessions while the Ibex 35’s run is even worse, since it accumulates twelve consecutive sessions in the red (counting this Thursday).
Once again, the risks of a recession in Europe weigh on equities, as well as a more aggressive response than expected from the European Central Bank to stop the rise in prices, with the latest indicator in the euro area above 9%. .
The streak of cuts accumulated by the European stock market has left the EuroStoxx 50 close to the support of 3,500 points that Ecotrader’s technical advisor, Joan Cabrero, has been pointing out as key. A level that will try to defend the European reference index this Thursday.
The support zone of 3,500/3,540 points, close to the lows for the year, “it is vital that it be maintained in order for the aspirations to persist for the bullish hypothesis to take shape,” Cabrero points out.
But losing those 3,500 can mean, as long as the 4,025 points are not recovered, a fall to the area of 3,000/3,100 points.
In this environment in which European equities suffer from fears of a historic interest rate hike by the European Central Bank at the September meeting, sales continue to be the protagonists in the sovereign debt market. But US debt is also seeing rising 10-year bond yields. Thus, the global index that includes the main world bonds, the Bloomberg Global Aggregate, offers a return of 3.1%.
Meanwhile, the ten-year T-Note touches 3.2%, the German bund offers a yield of 1.54% and the Spanish ten-year bond rises to 2.73%.
Oil has given another lurch in recent hours. The Brent barrel, a benchmark in Europe, falls to 95 dollars after the Asian session.
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