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Tuesday, February 7, 2023

No Christmas rally: Europe closes down 4%, US down 6%

Last week of this turbulent 2022. An exercise in which events have not been spared and which is clearly marked by the war between Russia and Ukraine (a conflict that is still active today), runaway inflation in the world’s major countries is setting records and monetary The actions of central banks to stop this rise in prices with policies not seen for forty years.

All of this, added to the increasingly persistent and real fear that a recession is coming practically around the world in 2023, has led major markets on it and broke December on the other side of the Atlantic with a rally that They were experiencing since month. october. There has been a broad decline in this monthly count, which is above 3%. In most cases.

On the Old Continent, Ibex, along with the London Stock Market, as has been the roadmap throughout this year, have resisted better than these latest pressures that the market has faced. a) yes, Its decrease reached 1.6% during the month of December. This collapse is in stark contrast to the decline shown by the rest of the continental indices, with the Eurostox 50 as the most penalized selective since 1 December, falling more than 4%. The Parisian CAC was also nearing a 4% loss and, for its part, the German DAX suffered a 3% drop.

On a technical level, EuroStoxx has the duty to “overcome this resistance of 4,050 points which is still pending for this year 2023 and will create a more sideways bullish scenario towards the target of 4,400 points, bearish towards 3,000″. In comparison”, says Joan Cabrero, Ecotrader strategist and advisor. For the ibex scenario, Caballero stated that “In the best case, it could retrace to the high of 8,470 two weeks ago and at the most to the August high of 8,540.Something we can support if it manages to break the 8,340 mark resistance in the near term.”

On Wall Street, the latest macroeconomic data published in December reflected the strength of the US economy and opened the door for the US Federal Reserve to continue raising interest rates for a longer period. Thus, in monthly calculations, American woods have suffered more penalties than European ones. The Nasdaq 100 closed last month down more than 9% and with annual losses of up to 33%., The S&P 500 also suffered a 6% decline in December.

ibex man

This December, from the values ​​of Ibex, Indra has taken possession of the mountains. With its revaluation of 8.7% Signs off on its fourth consecutive month of earnings in 2022. Grifols and Logista close the podium with Ibex’s highest earnings in December, with gains of 6% and 4% respectively. across the table Meliá, IAG and Enagás saw the biggest declines for the month with losses of 12%, 10.8% and 9.9% respectively.

The euro ended the month of December at $1.069, after rising 2.74% on the month and ending the year at prices not seen since last May. Since the European currency hit its lowest level for the year at $0.96 on September 27, the accumulated revaluation is 11.4%. The previous meeting of the central banks of the US and Europe, the Federal Reserve and the European Central Bank continued to encourage investors to invest in the euro, given that monetary policy in the euro area and against the United States in the coming period. Will be more aggressively strong. month.

With respect to bonds, December has been a month of broad selling. Spanish titles with 10-year maturity started the month with a return of 2.93% and ended at 3.64%, the maximum since 2014. The value loss in the last month of the year is 5.74%. In the case of US bonds, it moved to 3.88% yesterday after a month in December in which it fell 2.3%. The German, for its part, ended the previous month down 5.6% at 2.56%, and closed the session at maximum returns to maturities not seen since 2011.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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