Europe’s stock exchanges put their critical levels to the test for Ukraine: Ibex 35 is in play for 8,500


European stock markets started the week on a high note, trying to make gains after the first bell rang. But it didn’t take long for spirits to turn to fears over the growing geopolitical tensions on the Ukrainian border. And even without the reference of Wall Street (closed for a holiday in the United States), the sales prevailed on Monday on the shares of the Old Continent. Losses are around 2% in several parks. In Spain, the Ibex 35 falters at 8,500 points, unheard of since the end of January.

With the setbacks of this session, the EuroStoxx 50, usually taken as a reference, endangers 4,000 points, a key level, according to Ecotrader. Why? Its loss at the end of this (or another) day would make way for additional short-term losses of 10%, up to the area of ​​3,600 points, according to Joan Cabrero, advisor to the portal.

In the Spanish Ibex 35 the level to watch is in the 8,500 units. This is his “demarcation line” between “a potentially bullish context and a corrective context”, again according to Cabrero. Should it end a session lower, it would open the door for further near-term declines of 5.9% to 8,000 points, and “worst-case scenario” to 7,700.

naturgy stars in sales on the Ibex starting again around 4%. ArcelorMittal and CIM about 3% are also left behind. Waiting for, Almiral (+11%) remains at the top of the table from the first hour after publishing its results for 2021 and forecasts for this year.

Will Biden and Putin meet?

Selling is widespread in stock markets despite the fact that tension on the Ukrainian border between Russia and NATO (the United States and its allies) has subsided, in theory, in recent hours. The week began with the announcement by the French government that the American president, Joe Bidenand his Russian counterpart, Vladimir Poutinehad accepted the proposal of the French Head of State, Emmanuel Macron, to hold a summit on Ukraine in which “security and strategic stability in Europe” will also be discussed.

In a note published this Sunday, the Elysée stresses that both Putin and Biden accepted the said summit that “it can only be held on the condition that Russia does not invade Ukraine“. Moreover, the text, collected by European Pressindicates that the content of the meeting between Biden and Putin “must be prepared by the American Secretary of State, Antony Blinken, and his Russian counterpart, Sergei Lavrov, during their next meeting on Thursday, February 24”.

However, from the Kremlin, they took little time to reduce expectations of a happy ending. Press officer Dmitry Peskov told reporters on Monday that “it is premature to talk about specific plans to organize any kind of summit”. In this sense, according to him India timeadded that “concrete plans” for a meeting between the leaders of Russia and the United States have not yet been launched.

Biden and Putin’s potential meeting “sort of reopens the door to a hard non-military exit, although in reality that is already technically underway,” comment analysts at Bankinter. “This week and the next are theoretically the last in which a ground invasion of Ukraine is feasible. before ‘Marshal Mud’ arrives with the thaw,” they add. The Ukrainian government estimates that the number of Russian troops deployed on the border has risen to 147,000, including 127,000 on the ground.

Germany on the brink of another recession

Thus, the Ukrainian crisis once again eclipses the macroeconomic agenda. This Monday the first data on business activity in the eurozone this month, which were “solid”, underline the analysts of Bankinter. However, the PMI indices also indicated an uptick in inflation ahead.

On the other hand, the central bank of Germany (Bundesbank) published its monthly bulletin, in which it underlines that the first economy of the euro zone seems destined to fall back into recession at the beginning of 2022. Moreover, before the opening of the stock markets , we know that wholesale inflation in the German country is at its highest level since 1949.


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