Reported by Jaime Sicilia Martínez
The main European indices started Tuesday’s session in positive territory but then fell back as US markets opened in the red. The Ibex 35 closed down 0.27%, whilst the indices in Italy and France stood out with gains of 0.1% and the Euro Stoxx 50 fell by 0.2%.
In Europe, the technology sector was once again the worst performer (down 1.7%), followed by the energy sector due to the fall in oil prices. The biggest gains were seen in consumer goods and property.
In the Asia-Pacific region, the Hong Kong Hang Seng fell by 0.4%, whilst the Japanese Topix rose by 1.1%. Today’s headline news is that China plans to invest some $295 billion over the next five years to build a network of interconnected data centres across the country to drive the development of AI.
Donald Trump continues to claim that negotiations to reach a peace deal with Iran are at an advanced stage, after Israel and Iran agreed once again to halt their mutual attacks.
Listed semiconductor manufacturers, which have seen the biggest gains this year on the back of AI optimism, experienced another volatile session due to fears over their high valuations.
Stellantis is recalling more than a million Jeep vehicles in the United States due to an electrical fault that could cause a fire, and has advised owners to park outdoors and away from other cars until the issue is resolved.
A day of falling yields on major sovereign bonds, against a backdrop where the probability of the Fed raising rates by 25 basis points in December by 2026 is now widely taken for granted, whilst the ECB is expected to raise rates on Thursday and again in September.
Thus,the 10-year Bund yield fell by 1 bp to 3.04% and the Spanish benchmark by 2 bp to 3.48%. The 10-year Treasury yield fell by 2 bp to 4.53%.
Oil prices fell following Donald Trump’s comments on progress in the peace talks, although both sides warned that hostilities could resume. Brent crude reached $118, and today is on the verge of falling below the $90 mark.
Gold is flat for the year, standing at $4,280.
Meanwhile, the price of TTF gas for one-month delivery corrected part of its recent rise to €48/MWh.
