Added to the fear of recession due to rate hikes are political uncertainty in Europe after the victory of the right in Italy and the new falls of the euro against the dollar, to create a cocktail that sours investor sentiment.
Germany’s business confidence indicator (Ifo) has worsened more than expected, marking the third worst reading in history. “The war in Ukraine, the energy crisis and the tightening of the ECB’s economic policy complicate the economic outlook. In this context, it is difficult for Germany to avoid a recession scenario in 2023,” Bankinter analysts point out.
In this scenario, the Ibex 35 has closed at 7,508.5 points, at its lowest since November 2020, with most of its values negative. The biggest falls were presented by Colonial (-3.71%), Solaria (-3.09%), Mapfre (-2.72%), Telefónica (-2.62%), Merlin (-2.46%) and Sabadell (-2.42%).
In the positive territory, only Fluidra (+3.12%), Sacyr (+2.22%), Grifols (+0.65%), Indra (+0.38%), Amadeus (+0.3%), IAG (+0.27%) and Aena (+0.23%).
The Italian stock market has reacted upwards to the electoral result, with a rise of 0.67% in the session. As for the rest of the European places, London has increased by 0.03%, Paris has lost 0.24% and Frankfurt has lost 0.46%.
At the business level, Iberdrola has announced that it is looking for a strategic partner for its renewable energy business in Spain.
Grifols has indicated in a statement sent to the National Securities Market Commission (CNMV) “the commitment” of its board of directors “to reduce debt levels”. “The Board is evaluating various strategic alternatives to achieve that goal, while improving the company’s cash flow. The Board also notes that, as of August 31, 2022, the company had unused cash and financial lines totaling more than €1.3 billion.” The company has also announced that it will publish its quarterly results from the first quarter of 2023.
Grenergy Renewables achieved a net profit of 8.8 million euros in the first half of 2022, which represents an increase of almost 29% over the same period last year, as reported today by the company to the National Securities Market Commission (CNMV). The EBITDA also climbed to 20.1 million euros in that period, with an increase of 51%. This growth was reflected in the revenue of the listed company, which reached 107.3 million euros, which represents 30% compared to the 82.5 million in the first half of 2021.
Melia Hotels Y NH Hotels They are considering new hotel sales to reduce the bulky debt.
Investors continue to watch the evolution of the war in Ukraine with concern, seven months after the Russian invasion. The US has warned of “catastrophic consequences” of Moscow’s use of nuclear weapons in Ukraine, after Russia’s foreign minister said regions holding referendums would be fully protected if annexed to Russia.
In Asian stocks, shares in the Asia-Pacific region were mostly down on Monday as negative sentiment continues to weigh on markets. Japan’s Nikkei 225 fell 2.66%. South Korea’s Kospi fell 3.2%. Hong Kong’s Hang Seng Index fell 0.38%, erasing earlier gains. In mainland China, the Shanghai Composite fell 0.2% and the Shenzhen Component rose 0.647%.
The price of a barrel of Brent quality oil, a reference for the Old Continent, stood at 85.39 dollars, with a decrease of 0.86%, while Texas stood at 78.21 dollars, after falling 0 .62%.
The price of the euro against the dollar was placed in the middle of the session at 0.9612 ‘greenbacks’, while the Spanish risk premium stood at 116 basis points, with the interest required on the ten-year bond at 3.257%.
In the forex market, eyes turn to sterling, which has tumbled to an all-time low, prompting speculation of an emergency response from the Bank of England, as confidence in the government’s plan evaporated. United Kingdom to solve its problems, and scared investors turn to US dollars.