Reported by Álvaro Romero Mateu
European stock markets are trading slightly lower in a session lacking a dominant narrative. The IBEX 35 fell by 0.1% and the Euro Stoxx 50 rose by 0.2%.
The telecoms sector was weighed down during the European session by news that SpaceX and Charter Communications are considering launching a mobile phone service. Of particular note was Deutsche Telekom’s fall of just over 7%.
The session was characterised by a lack of clear direction. The reopening of diplomatic channels between Washington and Tehran is helping to stabilise the market, but investors are not writing off the Strait of Hormuz issue just yet. The result is a European stock market without any major movements, where internal rotation is more significant than the direction of the indices themselves.
In Spain, Repsol stood out on the upside due to the rebound in oil prices, whilst Iberdrola also performed relatively better.
In Europe, the market has seen a stronger performance in software technology offset by weakness in defensive consumer goods and telecommunications. The overall mood is one of wait-and-see: less energy-related fear than a few weeks ago, but still little conviction to aggressively increase risk.
On Wall Street, by the close of the European market, the recovery was concentrated in large technology firms and digital consumer goods. The rebound does not alter the underlying debate: the market continues to distinguish between companies capable of monetising AI and those where infrastructure spending is beginning to outweigh the promise of growth.
Fixed Income
A session of slight increases in yields, with the market awaiting future central bank interventions in Sintra and the US employment data due to be released this week.
The yield on the 10-year German Bund stands at around 2.86%, having risen by 1 bp during the session. Meanwhile, in Spain, the yield on the 10-year bond remains at around 3.35%, with no significant changes
In the United States, the yield on the 10-year Treasury stands at around 4.38%, up 1 bp.
Commodities and currencies
Brent has rebounded to $73 per barrel, marking a moderate recovery from multi-month lows. The cumulative fall over June remains significant, but reduced maritime activity following the weekend’s attacks serves as a reminder that normalisation will be gradual.
Gold fell by 1.7%, returning to levels slightly below $4,020 per ounce.
The dollar fell slightly and the EUR/USD exchange rate stands at 1.14.
