Yesterday the apparent parenthesis in the trade war between the United States and China avoided it, but the evolution of the stock market had already given clear signs that the Ibex would succumb to the numerous pressures in the form of political instability. And if any other element was necessary, today the contraction of the German economy, the limited growth data of the Eurozone and the investment of the rate curve that has been registered precisely in the US debt market have been added. All this has unleashed the fear of an economic recession , and the result is that the selective one has already lost everything earned in the year after leaving 2% and closing at 8,525 points.
The contraction in a tenth of the Gross Domestic Product (GDP) of Germany during the second quarter already encouraged the first sales at the beginning of the session, and the concern increased at the time when Eurostat published that the economy of the euro zone advanced only 0.2% between April and June, half that in the previous period.
And at the opening of Wall Street, and unlike what happened yesterday, everything went worse. The market found that, as noted, the rate curve has been reversed , that is, that the short-term debt offers a higher return than the long-term debt. Just the opposite of what the logic of the market says, and a phenomenon that analysts consider as one of the most reliable indicators that a recession is approaching for a reason as simple as it is blunt: this has happened in previous crises. As a result, the opening of the US market was marked by red, with falls that were also around 2%.
The bank collapses again
All this, and back to Ibex, has made the banking sector, once again, the one that has suffered the most. It is something as usual as worrying and that is especially negative for an index as banked as the Ibex. Bankia has yielded more than 5%, Banco Sabadell and Bankia have touched that same 5%, Santander and CaixaBank have left more than 3% and BBVA has lost 2%. A real sangria for a very weakened sector and to which there are many doubts about the future.
"The banking sector must be totally reinvented," explains Javier Molina, spokesman for eToro for Spain, who also points out that there is a fundamental problem for the Spanish Stock Exchange: "In the Ibex there is no growth or profitability, there is a clear downward trend . And there is an added problem: when the United States really goes down, Europe and the Ibex will also fall. On the other hand, with the increases in the United States, Europe has not gone up. "
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