A new black Monday. World stock markets are witnessing a wave of massive sales in an attempt by investors to take cover from what lies ahead. The rise in rates by the United States Federal Reserve will raise the official price of money between 50 and 75 basis points on Wednesday to combat galloping inflation in the country. This measure, which will be completed with new increases in a few months, is causing a relocation of assets based on the risk that each one can or wants to bear.
And since there are doubts about how things will turn out and if the dreaded recession will come, everything is falling apart. The Ibex 35 has closed with a fall of 2.5% to 8,181 points. Just two weeks ago, it was close to 9,000 points.
In Europe, the Milan stock market has dropped 2.8%. The Eurostoxx, 1.71%. Paris and Frankfurt, 2.7% and 2.5%, respectively. Europe has different problems than the United States. There, inflation, which is at 8.6%, has a large component of economic overheating, with a very strong demand for full employment and solid investment by companies. Obviously, they also greatly affect the increase in energy prices. In the middle of the session, Wall Street witnesses a sidereal bump, especially for what it dragged until today. The Nasdaq is on track to lose 4% and is 32% below the highs of last November. The Dow Jones, meanwhile, is down 2%, down 16% since January. Another of the great indices, the S
In the eurozone, on the other hand, they have insisted on blaming Russia's war in Ukraine as the cause of inflation. And there are many more reasons why prices are soaring.
In any case, now the recipe is not so aggressive and interest rates will rise less and more slowly. Even so, the market is clear that there will be significant increases and investors take positions. The debt of the countries most vulnerable to the new scenario is burning and sales are sinking bond prices, which triggers their profitability, which moves in the opposite direction. The Italian bond, for example, is already at 4%, with the country's risk premium at 250 points. The ten-year Spanish Treasury bond is close to 3% and the premium is around 135 points.
Cryptocurrencies are also experiencing a real stampede today. Bitcoin has lost 15% in the session, until falling below 23,000 dollars at times. It's not the only one. The fear of losing everything has been primed in this market