The European stock market falls 11% in the year and begins the correction

The magnanimous sales suffered yesterday by all the European indices already show a significant balance of losses that exceed 10% in the year in the case of the EuroStoxx 50 and the German Dax. The Ibex 35, which last year was at the tail of all the purchases that the bags experienced, today is positioned as the least bearish square since January, with a cut of 5.9% after yesterday’s bump of 2.85% . And this despite the fact that the banking sector -which represents a third of the index- was the most affected in Europe, with a collapse of more than 8% in the session.

The falls were contained after the more contained opening of Wall Street, although they mainly affected the German market, given the link and -closer- commercial relations that it maintains with Russia. For the Dax, yesterday’s fall of 4% was the biggest suffered by the selective since the appearance of omicron, despite the fact that it fell by more than 5.6% during the session. So far this year, its losses have reached 11.6% and from the historical maximums that it touched in January -at 16,271 points- it has already fallen by 13.6%. Yesterday the biggest drop was for Deutsche Bank, above 12%, followed by Continental, a tire supplier, and falls of more than 7% were also seen among the large carmakers such as Porsche, BMW or Mercedes. In the annual balance, within the Frankfurt selective, the highest sales continue to be concentrated in everything that sounds like confinement and deliverysuch as Delivery Hero, HelloFresh or Zalando, with huge losses, from 55% to 22% since January.

The impact that the war initiated by Russia has had in Germany has not been of such magnitude in other parks. In the case of the Paris stock market or the EuroStoxx 50, yesterday’s crash, although massive, was somewhat less. The European index saved 3,800 points at the close. Its correction since January is already close to 11%, and from January’s maximum the fall is close to 14%. The big banks, en bloc, were placed yesterday at the bottom of the selective, with losses close to 9% for ING Groep, and close to 8% for Intesa San Paolo, Banco Santander and BNP Paribas. The large car companies -in addition to the German ones, to which Stellantis is added- suffered falls of more than 7%, as did BBVA, with 6%. Only two firms closed positive yesterday, Adyen and Iberdrola, with gains of 0.94% as a demonstration of their refuge value profile.

The Paris Stock Exchange held the 6,500 integers at the close, despite the fact that it pierced them during the session. Its cut in the year is already 8.8% and from the historical maximums marked in January, the fall is around 12%. Société Géneralé was the most penalized value yesterday, with a 12% drop, followed by Renault, with 9%. In the US, the S&P 500 outperformed a 14% correction for the year yesterday, with the Nasdaq 100 up 16.6%.

volatility skyrockets

The VDax index, twin brother of the American Vix, shot up to 40 points yesterday, a level it had not touched since the end of October 2020, when the second wave of the virus spread dramatically across Europe before vaccines were discovered. . And the same thing happened in the US, the VIX climbed 19% in the session, with the ounce of gold at its highest in January 2021, and the S&P at its lowest in May.