European shares started the week with sharp declines – The Intransigente

EUROPE (Editorial) .─ The European shares prolong the slump last week. The leading stock markets of the Old Continent have opened the session on Monday with heavy falls by doubts about global economic growth. At noon, the Spanish Ibex fell 2.9% driven by construction companies and banks and all values ​​in red. El País of Spain selective appropriated the German DAX down 2.8% and the French CAC 2.7% is left In parallel, the increased uncertainty has led Monday the cost at which an investor has to face for protected from default of banks and European insurers its highest level since March 2013. and the German bond, considered the safest eurozone assets, to its lowest in almost a year.

“the risk of recession and deflation is growing, “said Francois Savary, chief investment officer of the investment company Prime Partners, told Bloomberg. “There are enough falls in recent days and that corporate earnings have not been so bad. The confidence is very low and not much visibility at this time. And that’s scary,” he adds.

The falls go beyond Europe, though much more attenuated. The MSCI Emerging Markets Index is left Monday 0.5% and prolongs Falls last week. Only Gulf stock markets remain type, with Chinese, Indonesian, Malaysian, Filipino and Korean bags closed for holidays. The Japanese Nikkei, however, was up more than 1%.

In the commodities market, strongly linked to the stock markets in recent months-the collapse of oil has dragged the indices a low, both the oil and most industrial metals lower. A barrel of Brent falls on Monday by 1.7% to $ 33.5 dragged for scarce overtones of agreement between major oil-producing countries outside the United States, to rebalance the market by cutting supply. On Sunday, Venezuelan representatives have met with the authorities of Saudi Arabia to try to reach an agreement in this regard and although the climate of understanding has been good, has not materialized any measure of output cut. “The Saudis are the great stumbling block to reduce pumping” said Ole S. Hansen, head of commodities research at Saxo Bank.

El País said that gold, a safe haven principal with the Japanese yen, the Swiss franc and the German and US bonds barely moved on Monday after a strong rally on Friday, when the good unemployment data in the US-in January was down 5% for the first time since before the Great recession fueled speculation about an even greater tightening of monetary policy by the Federal Reserve. All you are not two rate hikes this year, expected today by the major brokerage houses, would be a cold shower for the stock at a time when the growing dissenting voices on the strategy followed by the Fed .

in the currency market the euro continues, meanwhile, its way up from lows undertaken in late 2015 and since exchanged for $ 1.12.