Breaking News —
Madrid, May 22 . .- Doubts have returned to the main European stock markets – which have closed the session with disparate results – given the growing tension between the US and China, now on account of Hong Kong, and after the decision of Beijing not to set an economic growth target for this year.
However, in the whole of the week, the European parks have recorded increases ranging from 2.75% in Milan to 5.82% in Frankfurt, driven by the gradual return to activity of the main economies and by the willingness of the US Government and the Federal Reserve to approve more stimuli.
In today’s session, the Ibex 35, the main indicator of the Spanish Stock Market, has risen 0.17%, while Frankfurt has gained 0.07% and Milan, 1.34%. By contrast, London is down 0.37% and Paris 0.02%.
Previously, in Asia, Tokyo was down 0.8%; Hong Kong, 5.56%; and Seoul, 1.41%.
On Wall Street, the Dow Jones has opened with a decrease of 0.3%, a percentage that is maintained now.
According to Andrés Aragoneses, analyst at Singular Bank, the focus of investors’ attention has been today on the Chinese National Assembly, which has decided not to set an economic growth target for this year and pass a security law for Hong Kong, which In his opinion, “it could increase geopolitical risk in the region and globally.”
In the weekly calculation, Frankfurt has risen 5.82%; Paris, 3.9%; Madrid, 3.44%; London, 3.34%; and Milan, 2.75%.
Sergio Ávila, an IG analyst, points out that, despite the doubts on Friday, “the weekly calculation is positive.”
In his opinion, the markets “have had several catalysts” during the week, some positive and others negative.
Among the former are the resumption of activity in several countries and the willingness of the US Treasury Secretary, Steven Mnuchin, to provide additional fiscal stimuli to the US economy.
“The negative side of the currency is that we see an increase in tensions between China and the US,” Ávila told EFE.
In the oil market, prices have fallen today, although the decreases have slowed down throughout the day.
Brent, the benchmark crude in Europe, depreciates 3%, up to $ 35 per barrel, while West Texas Intermediate (WTI) falls 2.5% and is around $ 33 per barrel.
Investor doubts today have boosted the price of gold, one of the assets considered safe in times of crisis, which rises 0.7% and exceeds $ 1,734 per ounce.
In the debt market, the interest demanded on the Spanish ten-year bond, the reference one, falls slightly, to 0.7%, and the risk premium (profitability difference with the German bond for the same term) remains at around 119 basis points.
Spanish debt remains stable in the secondary market despite the fact that the Treasury raised its gross financing needs for this year yesterday.