March 24 () –
The Ibex has seen its weekly rise limited to 0.7%, staying at 8,781.4 points, after this Friday a new wave of doubts and uncertainties affected the prices of European banks.
The new day of turbulence has taken place after this week the selective of the Spanish stock markets and markets recovered slightly from the hangover that had affected it last week with the collapse of Credit Suisse. The maximum close in recent days was on Tuesday, when it reached 9,049.2 points.
“The Ibex 35 has suffered great volatility due to its exposure to banks, a sector that is highly vulnerable to uncertainty and which in recent sessions has suffered the risk of contagion from the fall of SVB and the rescue of Credit Suisse”, explained the XTB analyst Joaquín Robles.
The doubts of investors in European securities have focused this Friday on Deutsche Bank. The shares of the largest bank in Germany fell almost 15% this Friday on the Frankfurt Stock Exchange, although they have subsequently slowed their collapse to less than 9%, after the increase registered in recent sessions in the cost of guarantee insurance credit default (CDS).
Deutsche Bank announced this Friday its intention to prepay 1,500 million dollars (1,379 million euros) in fixed-rate level 2 subordinated debt, maturing in 2028, on May 24, 2023 at 100% of its principal amount, together with interest accrued up to (but excluding) the redemption date.
The instability experienced by the German bank has led the chancellor of Germany, Olaf Scholz, to indicate from Brussels that it is a “profitable” entity so there is “no reason” to be concerned.
EUROPEAN AND SPANISH BANKING
The volatility in the Deutsche Bank price has spread to the rest of the European sector. In fact, the Stoxx Banks has experienced a decrease of 4.61% this Friday, with the most affected being Raiffeisen Bank, Erste Group Bank, Société Générale, Bankinter, Commerzbank and BNP Paribas.
“The current situation does not seem to come from a real financial contagion, but rather from two factors: the speculative positions of the bears and the general feeling of some fear due to the recent news about banks, which make the market park rationality and overreact “, has indicated the partner of the consulting firm Accuracy Enrique Reina.
As regards the Spanish market, Cellnex was the only value that closed the day positively, with an increase of 1.34%.
On the contrary, banks have led the declines. Bankinter closed the session as the value with the worst performance, falling 5.38%. Behind were BBVA (-4.43%), Banco Sabadell (-4.28%), Unicaja Banco (-4.06%) and Grifols (-3.50%).
Banco Santander has been the 10th value that has fallen the most this Friday (-3%), while CaixaBank has been the 11th (-2.95%).
Faced with this situation, the director of strategy and founding partner of the firm Nextep Finance, Víctor Alvargonzález, has assessed that the ECB should “put its foot on the wall” and lower interest rates “immediately”, because a banking crisis “is, of course, definition, disinflationary”. This is because the banks themselves are going to tighten credit.
OTHER MARKETS
Regarding the rest of the indices of the main European stock markets, the German DAX closed Friday falling 1.66%, while the CAC 40 fell 1.74% and the Italian FTSE MIB fell 2.23 %. Thus, the Euro Stoxx 50 fell by 1.82% and the British FTSE 100 fell by 1.26%.
In the commodity market, oil has recovered some of the ground lost a few hours ago. At the end of the session, a barrel of Brent was trading at $74.71, down 1.58%, while West Texas Intermediate fell 1.44%, to $68.95.
The yield in the secondary debt markets of the Spanish bond with a maturity of 10 years has been located at 3.188%, from 3.246% in which it closed on Thursday. Thus, the risk premium ended the week at 105.9 basis points, which represents a slight rise of eight tenths compared to the previous session.
Regarding currencies, the euro has depreciated by 0.64% against the dollar, so that the exchange rate in the markets has reached 1.0761 dollars for each euro, thus losing the level of 1.08 dollars what he had accomplished this week.
