European stock markets are maintaining their rates on Wednesday despite the sharp declines recorded in the United States and Japan. The Ibex 35 opened the session with declines of more than 1% and was trading after 10 a.m. with a decline of 0.8%. The German Dax and the Paris Cac then corrected by 0.7% and the Italian stock market fell by 0.8%, declines well below the sharp correction of the Japanese Nikkei, which lost 4.2%.
The falls come after the Nasdaq tech index fell 3.2 percent on Tuesday, dragged down by the collapse of chipmaker Nvidia, which plunged 9.53 percent and lost $279 billion in stock market value, the biggest single-day drop in the stock market value of a U.S. company. The chipmaker reported results last week that disappointed the market.
Poor U.S. manufacturing data also weighed on U.S. investor sentiment, with a fifth month of contraction rekindling fears of a recession.
And the falls on Wall Street were followed by setbacks in Asia, with the sharp decline of the Nikkei, which already at the beginning of August collapsed by more than 12%, the biggest drop since 1987, dragging the rest of the world markets down. fear of a recession, given the fear that central banks have strangled the economy with interest rate increases to contain the inflationary crisis after the invasion of Ukraine.
Thus, the rate cut that the Federal Reserve will make, confirmed at the end of August, has not yet been confirmed. In Europe, the European Central Bank (ECB) is also expected to approve a further rate cut at its meeting next week.
After 10am, the only Ibex stocks trading positively this Wednesday were IAG (+0.37%), Iberdrola (0.16%) and Bankinter (0.05%). The biggest declines were recorded by Fluidra (1.9%), Amadeus (1.8%), Puig Brand (1.7%) and BBVA (1.5%).
The price of a barrel of Brent quality oil, the benchmark for the Old Continent, began with a drop of 0.71% at the opening of European markets, at 73.23 dollars, while Texas stood at 69.75 dollars, or 0.84% less.
In the foreign exchange market, the price of the euro against the dollar stood at 1.1054 “greenbacks”, while in the debt market, the interest rate demanded on 10-year Spanish bonds remained around 3.079%.
