The European markets fell again on Tuesday, still smarting from his black session yesterday, amid fears over the financial sector and lingering doubts about the global economy .
After opening with ephemeral gains, uncertainty reimposed in major European markets and most of these closed in negative territory, although less pronounced than the day before.
London he lost 0.88%; Frankfurt, 1.11%; Paris, 1.69%; Milan, 3.21%; and Madrid, 2.39%. Meanwhile, Wall Street, who tried to recover slightly after opening lower, finally closed in negative territory, with the Dow Jones yielding 0.08% and the Nasdaq down 0.35%.
The day had opened with the collapse of the Tokyo Stock Exchange (-5.40% at the end), which did not help that places would regain his composure.
“Traders expected a quiet week” due to Chinese markets closed for the New Year celebrations. But “the awakening has been brutal,” says Michael Hewson, analyst at CMC Markets
Multiple factors depressed markets. Weak oil prices, poor economic indicators and now the fall in banking stocks.
“operators massively sell their shares and take refuge values,” notes the brokerage Aurel BGC.
the fears are focused in recent days on the banks, when from the beginning this year the market was focused exclusively on low oil prices.
the International Energy Agency (IEA) on Tuesday launched the short term the price of a bucket of cold water on the hopes of a rise oil, confirming the huge supply of crude and weak demand.
Apart from oil, “growing stress around the banking sector, with its risk of spreading,” says John Plassard, Mirabaud Securities.
banking stocks had serious difficulties Tuesday. Deutsche Bank lost 4.27% in Frankfurt and Milan, Intesa Sanpaolo lost 6.21% and Unicredit, 7.91%. Societe Generale fell 4.38% in Paris
-. Banking sector under pressure –
The sector “is facing many problems,” including a drop in profits, economy world that is braked and negative rates worldwide, reducing its ability to improve profitability, details Hewson. “It is quite easy to understand that they can not do everything at once,” the analyst said.
Deutsche Bank, the first German bank, which has plummeted on the stock market in recent weeks, it had to issue a statement to reassure investors about its ability to pay debts.
also Benoît Coeuré board member of the European Central Bank (ECB) tried to extinguish fires by stating that the uncertainties that threaten the world economy does not come from the euro zone. Coeuré also said desired coordination of the G20 countries, who meet later this month in Shanghai, “given the almost total depreciation of emerging market currencies to limit any risk of contagion within the global economy.”
but traders are interrogated in effect on the ability of central banks to act in this very degraded global economic environment.
the ECB may act in March, but all attention is now focused on US Federal Reserve (Fed). Its president, Janet Yellen, has planned an intervention against the Congress Wednesday and Thursday.
However, if Yellen choose a hard line, which would imply raising interest rates again, the actions ” sold at clearance prices, “said Alan Skrainka, chief investment officer at Cornerstone Wealth Management
-. Assets with less risk –
on the other hand, the bond market remained stable after the mass operators acudieran towards less risky assets such as German debt, whose interest rates have fallen sharply.
in the foreign exchange market, the euro was steady against . greenback to $ 1.1191
the gold-true barometer of fear of the market steadied Tuesday at $ 1,190 an ounce on Monday after being shot
<-.! google_ad_section_end ->
No comments:
Post a Comment