Markets drop lived truce yesterday. Doubts emerge again on the financial system, and the result is a new high risk premiums as Ireland, a puncture of the euro and a significant correction in the stock. Wall Street points to the decline in their return to activity, and banking drags Ibex below even the 10,500 points.
Investors face the day with a new twist defensive adjustments in their portfolios. The dominant relaxation yesterday, the result of the holiday closure of Wall Street, diluted, and it leads to a significant profit taking.
The NYSE is inclined cuts on his return today to the activity. The declines have already been made at the Tokyo Stock Exchange (-0.81%), after the outcome of the meeting of the Bank of Japan rate could not stop a further escalation of the yen.
At mid session, the red numbers take over European equities, and the financial sector is again the epicenter of warnings. The reports on the needs of millions of German banking capital came shortly before the Ecofin meeting consider adopting new taxes to the financial sector, and almost parallel to the information of 'Wall Street Journal' about the weakness of the stress tests published in July, to underestimate peripheral exposure to debt.
The fear of an economic relapse is felt also in the foreign exchange markets and fixed income. The German factory orders fell 2.2%, far from the +0.5% expected. The euro accelerated declines, loses $ 1.28 even after overcoming 1.29 yesterday. Oil fell more than 2%, and the risk premium of Spain picked up brush ahsta 180 basis points. The insurance of default (CDS) scaled by enciam of 225 points.
The financial sector is, by far, the most penalized in the day. A mid-session drink the ten largest pan-European index falls Eurostoxx50 (Société Générale, BNP Paribas, Crédit Agricole, Intesa, ING, Deutsche Boerse, BBVA Generali, UniCredit and Deutsche Bank). At the other extreme, on the climbs, only highlights Nokia, led by Morgan Stanley analysts.
The profit taking also hits the Spanish stock market, which lost the 10,600 points, and at times 10,500. The renewed tension in the debt market puts pressure on the financial sector, BBVA and Santander and values are among the hardest hit of the day, along with the other banks.
Another heavyweight like Telefonica in turn suffers the reduction of recommendation issued by Barclays, from 'overweight' to 'equal to the market. " The more positive note puts Iberia, encouraged by analysts at UBS, which raised its price target to 4 euros per share.
