The country.- The stock markets open the last session of the week with sharp drops that are added to those of recent days. The uncertainty opens again in Greece for the electoral process adds to fears of a slowdown in the pace of global growth. The devaluation of the Chinese yuan and the sharp depreciation of the currencies of other emerging countries, accompanied by a sharp drop in the price of raw materials, point in that direction.
Today, in addition, have published data that point to a sharp slowdown in industrial activity in China, which would corroborate the idea that the devaluation of the yuan is a defensive measure to try to revive an economy loses steam. China has been the main engine of global growth in recent years and the slowdown would affect especially to countries exporting raw materials, particularly emerging.
On the other hand, the slowdown in China and emerging and fall of their currencies supposed deflationary pressures for Europe and the United States. That can delay any shift in monetary policy. In particular, investors and analysts are beginning to doubt that the US Federal Reserve will raise interest rates at its September meeting, as it was taken for granted before the events of recent weeks.
widespread declines
The fall of the stock markets has spread to all developed markets. Wall Street suffered its worst session last year and a half, with falls of around 2%, the Asian markets have experienced sharp falls this morning and European stock markets started Friday with falls between 1% and 2%.
The Spanish Ibex 35 has started the session with a fall of around 1.5%, although it later recovered some ground. The Greek electoral process has also affected the risk premium on Spanish government debt, that is, the additional yield investors demand to the Spanish 10-year bonds compared with German, considered a risk-free asset. That premium rises to 144 basis points (1.44 percentage points) and stood at its highest level in over a month.
LAL
No comments:
Post a Comment