The agreement between Democrats and Republicans for the debt ceiling in the US eliminates an unknown in the markets and relieves the stock markets this Monday. In the absence of parliamentary approval, it will avoid an imminent default situation with catastrophic effects on the world economy.
With this support, the European markets started the day with widespread gains, albeit moderate, as concerns about new interest rate hikes limited gains. After just over an hour of exchanges, the main rise was taken by the Ibex 35 with 0.35%, which allowed it to trade above 9,200 points. The situation has turned around losses with the call for elections.
In Madrid, the biggest increases within the Ibex 35 were registered by Grifols (2.4%), Bankinter (1.7%) and Acciona (1.5%). On the opposite side were Meliá, BBVA and IAG, although none of them lost more than 1%.
A little further behind were Frankfurt, with an advance of 0.22%, and Paris, in similar terrain. In Europe, the economy continues to be a cause for concern while the increase in interest rates is passing through to consumption and activity, with Germany officially in recession. In the Asian continent, Tokyo has recorded a 1% rise, with a drop of one point in the Hang Seng of Hong Kong. The US and UK are off for a holiday.
“The agreement avoids the worst possible crisis: a default for the first time in the history of our country, an economic recession, devastation in savings accounts, millions of jobs lost,” President Joe Biden argued.
Reaching the deal and moving closer to avoiding a US debt default has renewed investor appetite for riskier assets like commodities. In the case of oil, a barrel of Brent, a benchmark in Europe, stood at a price of $77.45, with a rise of 0.6%.
In the field of currencies, the focus is today on the Turkish lira, which falls to new all-time lows against the euro and the dollar after Recep Tayyip Erdogan's victory in the presidential elections.
