Wednesday, September 28

Europe opens 2022 with slight advances in its main indices

The European stock markets start 2022 slightly higher, in line with the behavior shown this morning by the futures of the main Wall Street stock indices.

Specifically, the German DAX has opened the year with increases of 0.39% in the 15,497, the CAC 40 French with advances of 0.62% in the 7,197.40, the italian bag increased by 0.27% in the 27,422, the Ibex 35 opens with a rise of 0.18% at 8,729 points and the Euro Stoxx 50 it added 0.42% at the opening to 4,323.95 points. For its part, today the UK stock market remains closed.

After closing 2021, which can be considered a good exercise for Western equities, this Monday the main European stock exchanges face their first session of a year, 2022, which is full of challenges for them. Thus, with the main developed economies in full deceleration as a consequence of the latest wave of the pandemic and with inflation having reached its highest levels in decades in most of these economies in December, investors should assess the effect that all this may have. end up taking what for us is the key to the performance of the stock markets: the expected results of listed companies. In this sense, and with the pandemic possibly giving its last gasps if the benignity of the Omicron variant is finally confirmed, inflation will be the variable that, with its behavior, will not only determine the behavior of the different sectors / values ​​in the Western stock markets but, most likely, equities as a whole, at least during the first half of 2022.

From Link Securities, they point out that, “if the scenario facing the stock markets is what we expect: that of developed economies growing at a moderate to high rate in an environment of high inflation, it will be necessary to be very selective When designing our portfolio, a portfolio in which we believe that the securities of sectors such as those related to mineral raw materials, energy or many industrial sectors, including those of the automotive industry, should be overweight, while defensive ones , such as utilities, basic consumption or food, should maintain a lower relative weight. Regarding the values ​​classified as “growth”, it should be noted that we think that many of them will continue to be attractive despite that their valuations seem a priori very demanding. In this last group, we would bet on companies in the semiconductor sector and on companies specialized in “the cloud ”, as their businesses will continue to grow strongly whatever the macro environment they face.”

Inflation in Turkey it climbed to 36.08% in December, a figure much higher than the 27.36% expected by the consensus of analysts. With prices completely runaway, the Erdogan government deployed an expansionary monetary policy. The effect of the rate cut put even more pressure on the lira, which is at an all-time low against the dollar.

Other markets

The Nikkei or mainland China stock exchanges they are closed for holidays. The Hang Seng, which subtracts 0.85% at 23,199 points, and the Kospi in Seoul, have opened their doors, which rises 0.37% at 2,988 points.

The Chinese real estate Evergrande I was defaulting coupons again last week. In this case, it was a question of $ 255 million that should have been paid to the bondholders last Tuesday. Stocks fell sharply on the news, but rebounded + 6% in Hong Kong on Friday following comments that they are building and expect to meet delivery commitments. However, today the regulator has suspended Evergrande’s securities again and is affecting the recovery of confidence. The company is preparing a capital increase to try to redress its delicate financial situation.

Wall Street ended the year with falls. Last Friday, December 31, the Dow Jones closed with a 0.16% subtraction at 36,338.30 points, the S&P 500 dropped 0.26% to 4,766.18 units and the Nasdaq 100 subtracted 0, 66% in the 16,320.08 points. This Monday, American futures move with increases of around 0.25 and 0.40%.

The oil prices They were rising into 2022 on a positive note, although concerns about declining demand due to the rapid spread of the COVID-19 pandemic limited gains. This morning, the Brent futures rose 0.69% to $ 78.32 per barrel, while those of the West Texas They were up 0.68% at $ 75.72.

OPEC + foresees a mild and short-lived impact from the omicron variant.

The natural gas price in the EU It falls for the 6th consecutive session to its lowest level in 3 weeks and 45% below the recent all-time high thanks to the arrival of North American ships and forecasts of mild temperatures.

The euro / dollar starts 2022 correcting positions. The pair gives continuity in the first bars of the year to the trend shown throughout 2021 in which more than 8% was left. This Monday, euro trades with drops of 0.20% in the 1.1345 greenbacks.

In the cryptocurrency market, Bitcoin is down 0.60% and moves at $ 46,896.0.

Agenda of the day

This Monday the references to follow will be the manufacturing PMI of Spain, France, Germany and the euro zone as well as the US and Italian retail sales. Also in the US, the construction spending for the month of December will be known.

Review that today is a holiday on the UK stock market.

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