July 30, 2021

The negative domino effect on Wall Street hits stock markets in Latin America and Europe

The negative domino effect on Wall Street hits stock markets in Latin America and Europe

A domino effect in negative today registered the stock markets of Latin America and Europe thanks to a Wall Street marked by heavy losses as a result of the fear that aroused a rise in the profitability of public debt and a further increase in interest rates by the US Federal Reserve

At the end of the session, the Dow Jones Industrialists, the main New York indicator, left more than 830 points in a fall of 3.15%, to finally settle at 25,598.74 units.

The selective S & P 500 retreated 3.29%, stood at 2,785.68 points and linked five days in red, its longest negative streak since the end of 2016, while the Nasdaq composite index experienced its most complicated session since mid-2016 and subtracted 4.08% to 7,422.05 integers.

Today the technology sector (-4.77%) clearly precipitated, which had its worst day in more than seven years, weighed down by firms such as Facebook (-4.13%), Amazon (-6.15%), Apple ( -4.63%), Netflix (-8.38%) Alphabet (-5.06%) or Microsoft (-5.43%).

In response to this atmosphere of tension and zero profits, the US president, Donald Trump, said that the Federal Reserve "has gone crazy", after the notable fall in Wall Street, which the White House tried to play down.

The negative effect continued in Europe, where the corners of Frankfurt (-2.21%), Paris (-2.11%), Milan (-1.71%), London (-1.27%) and Frankfurt ended in red. Madrid (-1.05%).

In Latin American markets, Sao Paulo fell by 2.80% and its Ibovespa index stood at 83,679 units, hampered by the external scenario and some disconcerting comments by far-right candidate Jair Bolsonaro on his privatization plan.

The market reacted negatively to statements by Bolsonaro, who will dispute with the progressive Fernando Haddad the second round of the elections on October 28, in which he set limits to the privatizations of state companies, defended by him, if he wins the elections. .

The turnover reached 14,645 million reals (about 3,900 million dollars).

In Mexico, the Price and Quotation Index (CPI) fell by 0.76% to 48,136.18 points, after movements of 19,836 million Mexican pesos (about 1,034.7 million dollars).

The Merval index of Buenos Aires marked a fall of 3.59%, to 28,549.77 whole after an exchange of papers totaling 749.31 million Argentine pesos (20.15 million dollars).

Santiago also recorded a decrease of 1.19% in its main index, the IPSA, which closed at 5,244.97 units, after an amount of the shares traded for 77,610,026,676 Chilean pesos (about 113.79 million dollars).

In Colombia, its capitalization index (Colcap) fell 1.19%, reaching 1,479.75 points, after trading securities for 113,705 million Colombian pesos (about 36.7 million dollars).

The S & P / BVL Peru General Index registered 19,211.34 integers, after registering a loss of 0.93%, with a total of transactions for 19,580,846 soles (equivalent to 5,879,251 dollars).

The Global Bonds index of the Montevideo Stock Exchange (Bvmbg) fell by 0.69% to 105.66 units with a total of operations of 38,943,902 Uruguayan pesos (some 1,188,074 dollars).

The evolution of the Latin American stock exchanges was the following:

Market Closing Points

SAO PAULO -2.80% 83,679

MEXICO -0.76% 48,136.18

BUENOS AIRES -3.59% 28,549.77

SANTIAGO -1,19% 5,244.97

COLOMBIA -1.19% 1,479.75

LIMA -0.93% 19,211.34

MONTEVIDEO -0.69% 105.66


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