Stock markets fell sharply due to fear of recession and Putin


  • Ibex 35 closed 2.46% down at 7,583.5 points, its lowest level since November 2020

the day of huge fall in European stock markets. scared of recession It is becoming stronger among investors. message from Wednesday US Federal Reserve says interest rates will stay longer to compete inflation spiral and despite Damage that could be the reason Growth The economy is generating a strong wave of sales. Increase tension in russiaCalling the population to fight in Ukraine with Putin and broadcasting nuclear threathas also increased the pressure on the market.

Down in his fourth consecutive season, ibex 35 It fell 2.46% to 7,583.5, its lowest level since November 2020 (the first drop of the pandemic). In the week, the reference index for the Spanish stock market fell 5%, the worst record since March (the first phase of Ukraine’s invasion). Similarly, the main has declined between 1% and 2%. selective of stock markets English (1.08%)French (1.87%)German (1.97%) And Italian (1.07%), while those registered on Wall Street posted similar declines as the European stock markets closed.

The United States suffered the largest increase in rates and delays in European Central Bank (ECB) to follow in their footsteps, euro keeps losing position against Dollar and fell more than 1% to about 0.972 units of the North American currency, the new at least 20 years, also affected worst case of the economy euro areaOr, more directly affected by the effects of Ukraine’s invasion on energy and food prices.

activity contraction

thus private activity in common currency shrink on September worst level of the last 20 months, According to the S&P Composite Purchasing Managers’ Index (Manufacturing and Services), it stood at 48.2 (meaning a decline in activity below 50) compared to 48.9 in August, and has declined to its lowest level in the past 20 months. Eurozone engine Germany’s engine fell again for the third month to 45.9 points, its lowest level since May 2020.

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Low growth (or even recession), high inflation and the prospect of higher rates to deal with it are also putting pressure on public debt. Interest on 10-year Spanish bonds rising to about 3.15% in private sales and a similar increase in German bonds (at 2.02%) means the risk premium remains more or less stable at 113 basis points.

petroleum, meanwhile, is also falling due to the prospect of less economic activity. Barrels of Brent from the North Sea, a reference in Europe, have fallen more than 5% 84 dollars,

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