The UK emergency plan shakes world stock markets and the Ibex falls to its annual low

The markets continue to show the wear caused by inflation and the containment measures undertaken to combat it.

Thus,

, around 2.46%, even falling to levels close to 7,500 points (7,527.500 was the day's low).

At the close of the session, this stood at

, with Grifols (7.86%), Repsol (-5.33%) and IAG (-4.17%) the listed companies that have been most affected by the contraction of the markets this Friday.

After this decline, the Ibex 35 marks its lowest record during the current year and falls back to levels not seen since November 2020.

The falls that have occurred this week in the reference markets in Europe derive from the decisions taken by the main international regulators, specifically, the American Federal Reserve (Fed) and the Bank of England.

The rest of the European stock markets have also closed the session with falls, 1.97% in London, 2.28% in Paris, 1.97% in Frankfurt and 3.36% in Milan, according to Europa Press reports.

This Wednesday, coinciding with the day that the dollar marked its maximum in decades against the euro, the Fed carried out a

, slipping that, soon, it will execute a new increase until reaching its highest level in 15 years.

For its part, the Bank of England announced this Thursday that it is

, its highest level since 2008, also showing that this will not be the last rise if inflation continues to make a dent in the pockets of the British.

After the aforementioned rate increase, Liz Truss has given the green light this Friday to a historic tax cut in the United Kingdom, the largest in half a century.

Also this Friday it was known that private activity in the euro zone as a whole registered a contraction in September, until it fell to its worst level in the last 20 months.

A recession is on the horizon for the euro zone as companies point to worsening business conditions and rising price pressures, linked to soaring energy prices

The euro has not dodged the blow either.

In this sense, the common currency has depreciated against the dollar to its lowest level in the last 20 years, specifically, to 0.9750 dollars.

Looking ahead to the week ahead, investors will be watching for preliminary PMI releases from some of the major economies, as well as speeches from members of the Federal Reserve and the European Central Bank.

Conforms to The Trust Project criteria

Know more

• markets