The Ibex 35 started the session undecided this Tuesday, with slight falls that it has turned into gains after the first exchanges. And then red has returned… Minimal breathers after a lousy Monday in which the bank dragged the selective below 9,000 points. Investors’ doubts about possible contagion from the banking crisis in the US keep the focus on the Spanish stock market.
Among banking entities, the falls were moderate at first, although later they were close to 1% among BBVA, Santander or Sabadell. “The turbulence continues in force in the financial markets, succumbing to the selling pressure that began at the close of last Thursday after the collapse of Silicon Valley Bank (SVB). With more information on the table, the Federal Reserve and the United States Government they will help depositors to access their money, but they “abandon” shareholders and bondholders”, reviews Diego Morín, IG analyst.
The hardest-hit stocks were Repsol, affected by the drop in crude oil (-1.25%), ArcelorMittal and IAG, both bordering on a 1% drop. On the opposite side, Merlin and Colonial stood out, with increases of over 1.5%.
The trend was not clear in the rest of the European markets either. London, Paris, Frankfurt, Milan or Amsterdam were torn between slight falls and slight rises. European bond yields remain lower as investors are betting on less tightening from the European Central Bank (ECB). At this Thursday’s monetary policy meeting, traders believe that a rise of 25 basis points will be most likely, when last week they considered a rise of 50 basis points almost certain.
The view is on the US and a possible contagion effect on this side of the Atlantic. The president of the United States, Joe Biden, came out on Monday to stop the bleeding in the markets. The president defended the soundness of the US banking system: “You can be confident that the banking system is safe,” he reiterated. Biden affirmed that the deposits are not at risk and that retail clients and companies will be able to access all their funds. “No loss will be borne by taxpayers,” he said.
