After two consecutive weeks of widespread increases, sales prevailed in Europe. In a context marked by the regulatory threat from China to its technology, the fear of lower economic growth and the possible start of tapering (withdrawal of stimuli) at the end of the year reflected in the latest minutes of the Fed, the main continental selectives, and also those of the United States, turned red , and, in the case of Europe, lost its short-term support.
The EuroStoxx 50, which ended the day in the area of 4,147.5 points, lost 1.9% in the last 5 days, its steepest fall since February and the third strongest of the year . In other words, it has practically corrected half of the rise that originated in mid-July from 3,900 points.
“The falls could continue towards 4,070 / 4,030 points, the scope of which would most likely provoke buyer interest and from where we would already begin to consider taking new positions,” explains Carlos Almarza, technical analyst at Ecotrader, who warns of the possibility of attending a relapse to July lows. Of course, this will largely depend on Wall Street finding the strength to deploy one last bullish lash before correcting significantly.
The selective Spanish, which this week became the least bearish among its European colleagues , with a fall of 0.9%, will also be aware of the United States because, as the expert explains, movements on the other side of the Atlantic could determine that the Ibex manages to approach 9,300 points without giving up the short-term support located at 8,800 points.
Some levels that, unlike his European counterpart, he managed to defend in a remarkable way in the last sessions .
In the rest of Europe, the German Dax, which fell by 1.1% weekly, already corrects 38.2% the rise that started at last month’s lows, drops that “could continue towards 15,540 / 15,420 points”, according to Almarza.
For its part, the French Cac stood out as the worst of the week, with a fall of 3.9%. The Italian Ftse Mib dropped 2.8% and the English Ftse 100 dropped 1.8%. Crossing the pond, with mid-session data, the Dow Jones and the Nasdaq lost 1.1%, and the S&P 500 saw drops of 0.8%.
In the evolution of national values, Solaria , the red lantern of the Ibex in 2021, became the favorite of investors this week, rising 11.4%. Also on the podium of the most bullish were Iberdrola , which advanced 6%, and Almirall , which scored 5.7% weekly after presenting the results of a skin treatment on Monday .
In the opposite case, among the worst of the week, the first in the queue was ArcelorMittal with a drop of 8.8%. Santander and Amadeus followed , losing 5.8% and 5.4%, respectively.
Investors seek new havens
Stock market sales led investors to seek safe haven assets such as the dollar, bonds, and even gold. Thus the euro fell about 1% in the week, to around 1.17 dollars . “Since the end of May, the dollar has recovered strongly, with most of the appreciation coming after the Federal Reserve’s monetary policy meeting on June 16,” observes the BofA team of analysts.
Investors’ search for new assets also led to widespread buying in the bond market. In this context, the yield of the German Bund fell to almost -0.50% , the interest of the Spanish 10-year bond to 0.21% and the US T-Note to 1.25% .
For its part, gold also had a positive week, although in its case the rise was moderate. Well, after scoring 0.3%, it was close to $ 1,786 per ounce.
Third ‘red’ week for oil
The price of a barrel of Brent registered its third consecutive week in negative, returning to around 66 dollars , after yielding 7% motivated mainly by the fear of the economic slowdown , once the central banks begin to withdraw their stimuli. So far, everything indicates that the situation of overproduction of black gold could worsen in the coming months, something that is punishing oil prices.