Europe tries to regain confidence and starts the day with hikes

Tubos Reunidos, Libertas 7 y Edreams, lo mejor del primer semestre en el Mercado Continuo

The IBEX 35 begins the session with a rise of 0.94% at 8,318 points. Within the selective, the best is for IAG (Iberia), which adds 1.94% to 1.5765 euros, followed by Fluidra, with increases of 1.71% to 32.70 euros and Repsol rises 1, 59% at 10,222 euros.

On the negative side, only Naturgy (Natural Gas), which lost 0.20% at 24.45 euros, Viscofan rose the least, 0.09% at 56.05 euros and Siemens-Gamesa, which advanced a 0.28% in the 21.26 euros.

Investors in European and US equity markets will continue this week very aware of the two factors that have caused the recent correction of this type of assets: the variant of Covid-19 baptized as Omicron and high inflation.

In principle, and as regards the first of these factors, the news about the studies that are being carried out on the new variant of the Chinese-origin coronavirus are positive, point out the Link Securities analysts.

Thus, everything seems to indicate that the virus has “mixed” with another coronavirus that causes a common cold to “become more human” and survive more easily in the host without doing so much damage. This would explain that, despite the fact that Omicron is even more transmissible than the Delta variant of the virus, currently the predominant one, the symptoms it produces are very mild.
“We believe that these first studies on the new variant of the virus will be very well received by investors, who will bet again on risk assets, specifically on equities and, within this, on the values ​​most linked to the economic cycle” , they point out from Link Securities.

As to high inflation, everything indicates that the main central banks, which will meet their monetary policy committees next week, will have to clarify their strategies in order to try to control an inflation that has gone from being classified as “transitory” to being perceived as more permanent.

The problems from China have not disappeared And despite reassuring words from various state bodies about the listing of Chinese companies in the US over the weekend, the nerves surrounding China’s big tech companies will continue. The real estate sector is also facing another reckoning this week, after Evergrande announced on Friday that it had received a $ 260 million claim for repayment, and that it could not guarantee that it would be able to meet its obligations in the future.

Therefore, the local government of Guangdong “sent a team” to help manage the operations. Evergrande and Kaisa They face payment terms abroad today and tomorrow too. There is still a lot of juice in this story until the end of the year, with Hong Kong markets probably the most vulnerable. What has probably changed is that the odds of an RRR cut by the PBOC have increased, says Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA.

The lingering doubts about Evergrande weighs down Hong Kong’s Hang Seng, which leaves 1.80% at 23,336 points. In mainland China, the Shanghai Composite lost 0.50% at 3,589 points and the SZSE Component fell 0.92%. Also cuts for the Nikkei, 0.36% at 27,927 points. On the other hand, the Kospi of Seoul advanced 0.17%.

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