Wed. Dec 11th, 2019

The Ibex enters negative in 2019 due to the danger of recession


The selective, who has had an erratic behavior during the day, received the first strike upon knowing the decline in Germany's economy after the publication of GDP for the last quarter with a contraction of 0.1%, which was already planned by the market. Being the reference in Europe, the same Eurozone data was barely 0.2%, offset by peripheral countries.

The second blow came from the other side of the Atlantic when shortly after the start of the American session, the reversal in the interest rate curve of the United States debt was known. For the first time since 2007, the profitability of the 2-year bond exceeded the profitability of its 10-year counterpart, generating great concern about the risk of recession that this data generates.

In the Ibex35, only Mediaset (+ 3.9%) and Acciona (+ 1%) are the positive references of the session, while on the other side of the balance, the entire banking sector drags the selective to the red zone with falls above 3%. The Ibex has broken in a single session the supports in 8,700, 8,600 and 8,500 points and enters negative terrain in 2019.

The flight to fixed income has caused a fall in bond yields. In the Spanish bond, it falls to the new historical lows of 0.14% while the German Bund, a benchmark in Europe, stabilizes at -0.65%. The reversal in the US rate curve has boosted the price in other refuge securities such as gold that once again consolidates $ 1,500 per ounce, while in currencies the exchange rate of the euro against the dollar remains at 1, 11 dollars.

(tagsToTranslate) darío garcía



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