Keeping the distance, September seems to have started the first stock market steps in the footsteps of the previous month and sales are the protagonists. After Tuesday’s declines, Wall Street opened Wednesday in the same line, even if investor sentiment calmed down as the session progressed and the main American indices were zero at the European close. Europe also ended in a red hue, even if the declines were mitigated with the opening of the American stock market and at the close of the stock market, the EuroStoxx lost 1.3% and the Ibex 35 lost 11%. Over the year, the balance of the European index is 7.23% and that of the Spanish index is 11%.which is slightly ahead of the Italian and is once again the most bullish index on the Old Continent.
With the latest declines, the buying zone of the European benchmark indices is also closer. This is explained by Joan Cabrero, technical analyst and advisor at Ecotrader, who indicates that with the cancellation of the bullish series of twenty sessions closing above the previous daily minimum, “there is the possibility that the Ibex 35 has peaked and begins a phase of correction of the previous rise,” he warns.
“In this case, the first support is located at 11,170 and 11,000 points,” says the expert, who assures that “by losing 11,000 points, the information that the market would give us is that the consolidation could be broader and deeper, potentially addressing the 10,690-10,740 points, where it would be an opportunity to buy.” The Ibex 35 closed at 11,213 points, which represents a distance of 4.4% from this buying zone marked by the analyst.
Selling pressure was also exerted in the EuroStoxx, which is at 4.3% far from the support set by Cabrero. “If we choose to correct 38.20%, it would mean seeing a drop to 4,795 points, with an intermediate support at 4,868 points, but if it falls below these 4,795 points, it is not excluded that the drop could deepen to 4,670-4,650 points, where I would be in favor of a repurchase of the European stock market” said the expert.
Fears of a recession in the United States are back in the spotlight after the release of data on the country’s labor market, which continues to show a significant cooling. Job vacancies fell to 7.673 million in July (he lowest level since January 2021) compared to the eight million expected and the 7.910 million in June. These data follow what was known Tuesday regarding the activity of factories in the United States, which, although having rebounded somewhat in August compared to the previous month, is still in contraction.
But the posts don’t stop there this week. On Friday, the employment data that set off all the alarms in early August will be released. and which has led to declines of up to 12% in the Japanese market. According to analysts, the employment figure could reach 4.1%, two-tenths below the current figure. In fact, the market expects this figure to be the one that will determine the Fed’s rate cut decision at the September meeting. Even though the agency is forecasting a 25 basis point cut, the weakness of this data encourages those who are betting on a sharp 50 basis point cut.
The fall of giants like Nvidia, which has lost more than 10% in the last two sessions, has also infected the European and Asian technology sector. Some heavyweights as Taiwan Semiconductor Manufacturing and SK Hynix fell more than 4%, dragging eastern stock markets into their worst session since a sharp decline in August. Japan’s benchmark Nikkei 225 fell 4% on Wednesday. From a European perspective, ASM Internacional or ASML Holding have fallen about 6% so far this week. Oil companies also dragged down the European index after the fall in crude prices, which spooked OPEC+ and rethought its plan to increase supply.
