The markets have woken up this morning with slight increases after Black Monday on Wall Street. The New York stock market registered very considerable losses yesterday, which led the Nasdaq to lose 4.7% and accumulate a 33% drop since the highs of last November. The S
Now there is a dead calm of uncertain duration. The Asian stock markets have closed a few hours ago with slight falls and the European ones are struggling to get their head out after the first hour of the session. The Ibex 35, which had reaped a decline of 7.5% in the previous three days, has returned to losses in the middle of the session after a positive opening.
In the rest of the European markets, and after a hopeful start, it has already returned to red. The rebound of the first bars has not allowed anyone to really get off the ground. It is normal. All the uncertainties remain while the conviction advances that the slowdown in the economy could lead to a harsh adjustment. The risk premiums of Spain and Italy are also moderating without excesses. Nobody sees the future in which the European Central Bank (ECB) will have to play an important role as stabilizer, which is yet to be defined, at all clear.
This reaction of the markets after yesterday’s events only clearly shows that instability will continue for a long time. Discussions begin today in the Federal Reserve’s open market committee in a two-day meeting that will culminate in a further hike in interest rates. It will be seen if 50 or 75 basic points, although this second option gains strength as the moment of truth approaches. Along with the monetary policy decision, the market will also be very attentive to Jerome Powell’s analysis, the president of the Fed, on the state of the economy and the central bank’s roadmap. What he says or does not say will be scrutinized ad nauseam in a country that in November reaches the halfway point of President Joe Biden’s term and must renew part of the House of Representatives and the Senate.
In the meantime, investors will continue their practice of reallocating assets, which is what is causing the massive sales of bonds and shares. Also of pseudo-actives such as bitcoin. The cryptocurrency has pierced $21,000 this morning and has reached a minimum of $20,834.70. It is an important fact. For the first time, an annual low, this morning, is below the annual low of the previous year. It had never happened before. Things are changing.
