After the downward closing of the US stock markets last Friday, and the worrying geopolitical news between Russia and Ukraine, the European stock market session on Monday began with a very negative tone, which softened slightly after the statements of the Minister of Russian Foreign Affairs about the possibility of continuing the negotiations. There were falls of more than 2% in the different European markets and the Ibex 35 dropped 2.55%, closing below 8,600 integers, with the risk premium exceeding 100 bps for the first time since June 2020 and with a better annual return of -1.6%. Even so, the Euro Stoxx 50 corrected 2.18% at the close to 4,064 integers, accumulating an annual drop of 5.4%, close to the year’s lows. At a sector level yesterday, the highlight was the sharp drop in the banking sector (driven by the drop in the IRR of the German bund), which was down 3.2% at the close, with strong daily declines also in electrical, insurance or construction. The best relative behavior, although always falling, was for the raw material sectors, and the most defensive ones were food, health or home consumption. It should be noted that for the year as a whole the defensive sectors of the European stock market corrected 6% compared to the 9.5% average of the most cyclical sectors. In 2022 to date, the best sector of the European stock market continues to be the financial sector (banks +14%), despite the falls in yesterday’s session, compared to a greater drop in technology, which corrects 15%. As far as securities are concerned, in the European stock market the correction of the banks stood out, with BNP Paribas and BBVA in the lead, together with Santander or ING, among the five values with the greatest drop along with Munich Re. On the side positive, the best behavior was for Adyen, together with Vonovia, Kering, Mercedes or Deutsche Boerse. On the Ibex 35, we saw a greater drop in Arcelor (-6%) in metals, IAG, Fluidra, Indra and the banks Santander, BBVA and Sabadell. On the other hand, the most favorable behavior was scored by Cellnex (the only positive value), Rovi, Telefónica, Siemens Gamesa and Red Eléctrica. The conflict between Russia and Ukraine was reflected on Wall Street, which closed on Friday with heavy losses and yesterday’s session also in negative, despite the fact that the statements of the Russian foreign minister endorsing diplomatic channels managed to reduce geopolitical tensions short term. The US stock markets opened the session slightly lower to end the day in negative, with a fall in the S&P 500 of 0.42% to 4,400 points, (annual return of -7.6%), which was also reflected in Dow Jones (-0.49%), with a flat behavior of the technological Nasdaq. INFORMATIONTitleThe stock market week begins with the absence of good results on Wall Street and the different European markets DescriptionAfter the downward closing of the US stock markets last Friday, and the worrying news at the geopolitical level between Russia and Ukraine, the European stock market session on Monday It began with a very negative tone, which softened slightly after the statements of the Russian Foreign Minister about the possibility of continuing with the negotiations. Author GLOBALCAJA
The stock market week begins with an absence of good results on Wall Street and the different European markets
