A bad start to the week for the equity markets. In Europe, the main lists all closed in negative, but it is the US stock markets that are worrying. The start of the American stock market was very bad, held back by a fear that is spreading more and more among operators. Now the risk is that a storm will break out in the US that may also affect the European markets.
Bags crippled by this leap that runs the risk of unleashing a storm
The first session of the week was negative for the European stock exchanges, even if the declines were all in all contained. But the concerns mostly come from Wall Street. The US stock market opened sharply lower and after two hours of trading the Nasdaq was losing more than 2.4% and the S & P500 1.4%.
The jump in oil prices prompted traders to sell at the start of the session. The values of both WTI Crude and Brent crude rose by about 3%. The first reached $ 78 and the second $ 81. The rise in black gold prices was favored by OPEC’s decision not to further increase crude oil production. Previously, OPEC had already decided on an increase of 400,000 barrels per day.
Oil had not reached these values for 7 years. With the stock exchanges crippled by this jump that runs the risk of unleashing a storm, the markets are now shaking. This record has created strong fears among professional investors in two important ways. The first relates to inflation. Indeed, if oil continues to rise, an increase in the prices of energy and therefore of many consumer goods will be inevitable. This increase could lead central banks to anticipate interest rate maneuvers to counter inflation. The second factor of concern relates to economic growth. In this case, if the price of oil continues to rise, it could act as a brake on the global economic recovery.
In Europe, limited drops
That is why today the European stock exchanges closed lower. The Euro Stoxx 50 index lost almost 1% and the German stock exchange lost 0.8%. The Paris stock exchange left 0.6% on the ground while London lost 0.2%.
Piazza Affari closed the session down by 0.6%. The Ftse Mib index (INDEX:FTSEMIB) finished at 25,460 points and therefore below the important threshold of 25,600 points. In Piazza Affari, among the blue chips, energy-related stocks stand out, favored by the jump in oil. Saipem was the best of the 40 with the largest capitalization, with a gain of 2.8%, followed by Tenaris with a rise of 2.7%. Among the top four blue chips is also ENI which rose 1.4%.
Deepening
The point about the markets
