In the face of uncertainty surrounding the future impact of central bank monetary policy changes on the global economy, volatility is dominating the stock markets around the world. Investors are unsure whether to buy after the fall or be extremely cautious while they wait for new indicators that will give more insight into the future of the recovery.
There was a feeling of doubt, as reflected in the notable fluctuations on Thursday. The losses ended at 0.5% for Ibex-35. However, it was able to withstand 8,100 point. The gap between the low point and high of the day was between 8,034 to 8,172 points. This gives you an idea of the rollercoaster ride of the day.
Bank securities were the most affected by the sales. There was a drop of 5% in Bankinter and Sabadell, CaixaBank, and a fall of 3% in BBVA.
The biggest shadow of the day was the publication of PMI data from the euro zone. This indicator is one of the most closely followed by the market due to its early nature. The news is not all good. Investors expected that the Eurozone Composite PMI would fall to 54 points in June, down from 54.8 points the month before.
The data have finally dropped to 51.9 points. This is a 16-month low, and it's very close to the 50 which mark the boundary between growth and contraction.
Investors closely monitored the comments of Jerome Powell, Fed Chairman, before the Senate Banking Committee. He reiterated his message that inflation could continue to surprise this year and ruled out the possibility of the US entering into recession. The strength of the labor force and strong demand helped to keep inflation at bay.
Energy companies are on the rise, having been severely affected in the last two sessions due to the Government's plans for imposing a tax on them. The most bullish values were Iberdrola (3.83%), Grifols (3.02%) and Ferrovial (2.45%), Telefonica (1.92%)), Acciona Energiea (1.07%), Endesa (9.0%), Red Electric (0.89%), and Ferrovial (2.45%).
Brent quality oil was at a price point of 111.29 USD, a reference for Old Continent. This price drop was 0.41%. Texas, however, stood at 105.56 Dollars after falling 0.59%.