The main European stock markets chain their third consecutive fall this Wednesday for fear that the large economies will suffer a recession installed among investors, even after the latest inflation data from the euro area confirm a moderation in prices.
Milan has lost 1.97%, Paris and Frankfurt, 1.54% each, Madrid, 1.28%; London, 1.01%; and the Euro Stoxx 50 index, which groups the main listed companies, 1.71%.
The stock markets have opened upwards, but they soon stagnated and shortly before opening the US market, where Congress is voting today on the agreement between Republicans and Democrats to set a debt ceiling, they changed their trend.
On Wall Street, its three main indices fell close to 1% at the close in Europe, which has finished sinking the European markets.
The Chinese PMI Known today have shown a weak manufacturing sector in contraction and at the minimum of the last five months, which leads one to think of a drop in demand for products manufactured in the Asian giant by the rest of the world.
As was seen yesterday in Spain, the inflation data for the large euro area countries for May have been low, especially in France and Germany, where they have fallen more than expected by analysts.
“However, behind the moderation in the escalation of prices lies a latent economic slowdown” which confirm data such as the downward revision of the German GDP for the first quarter or the drop in consumption in France in April, Banca March points out in a report.
In May, the accumulated fall exceeded 5% in Paris and London, Milan left 3.8%; Madrid, 2%; and Frankfurt, 1.6%, better than the rest thanks to the good results of some large companies that boosted the market in the middle of the month.
Brent oil continues to fall and at the close of the stock markets it was trading at $72.68, 1.17%. Today’s decline is explained by the bad data from China, although the fear of lower demand due to the global economic crisis has been present throughout May, the month in which crude oil has lost 8.6% of its value.
At the same time, the euro deepens its devaluation and is trading at 1.06 dollars, the level of March.
The strength of the US currency seen during May has had an impact on the price of gold, which began the month very close to its all-time highs (US$2,063 in the first days of May) and ends it at US$1,972.
As for debt, eurozone bond purchases have continued for the third day in a row, although they have lost some steam and yields today have fallen by around 5 basis points, half the amount of the previous two days.
The interest on the ten-year bond in Germany closed at 2.278%, 5.8 basis points less than the day before.
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