The IBEX 35 started the day with a fall of 0.27%, to 8,105 points. The main indicator of Spanish Stock Exchange This Monday has no relevant macroeconomic data or business appointments and the main catalyst is Chinawhere coronavirus cases are rising at a record rate.
The unstoppable growth of positives ends the easing of the country’s ‘zero Covid’ policy. The government has decreed new restrictions and stay-at-home orders in key cities across the country such as beijing Yes Shanghai. New brake on productivity and the revival of the Chinese economy.
Experts had expected that, simply because of the end of restrictions, the Chinese economy would make significant advances from this quarter, also driven by the expansionary policies of the political and monetary authority, but the situation of the coronavirus would put an end to the new expectations.
The easing of the “zero Covid” policy was a major shock for the markets last week, but now the doubts are returning. Fund managers warn that the current ‘recovery’ is not sustainable in the short term and they expect further asset declines as they understand that trading floors have not yet bottomed out.
Your vision improves, especially for Europe, a year in advance, but they believe that at this time it is very important to have coverage against losses. Not in vain, they boosted the liquidity of their portfolios to two-decade highs due to economic deterioration.
Investors also speculated on the possibility of smaller interest rate hikes by major central banks. Several prominent members of the Federal Reserve they asserted that this would not happen and even that rates of 7% could be observed next year. Instead, according to the agency Bloombergthe European Central Bank Yes, it would be ready to raise its rates by 0.5 points in December, against 0.75 points initially planned.
The rest of the trading floors of the Old Continent were also trading with declines of 0.62% for the Ftse Eb0.38% for the Dax 400.2% for according to 40 and 0.15 for the ftse 100.
The euro it registered declines of 0.5% at the start of the day and traded against $1,026. The book the pound fell by the same percentage to 1,183 greenback units.
The sovereign debt yield They were trading lower, but around the same levels they ended last week. Interest on the Spanish 10-year bond was 3% with the risk premium at 100 basis points at the same time. The German ‘bund’ stood at 2% and the yield on the US 10-year bond was close to 3.8%.
Oil was trading slightly lower at the open of the Ibex 35. The barrel type Brentthe most internationally relevant, was paid 87 dollars and the type west texas, reference to the United States, was exchanged against 80 dollars. an ounce of requested it had fallen to $1,745. In the crypto market, the bitcoins It was trading at the $16,000 limit.