Investors looking to sell are moving Europe in the green direction. PSI with one of the busiest additions to the block
Investors looking to sell dominated the start of the session, throwing Europe into the green and reversing the negative trend of recent weeks. Investors are taking advantage of stock prices that have not been so cheap since the start of the pandemic.
The Stoxx 600 started the day with a 1.02% rise to 428.72 points. Of the 20 industries that make up the index, the banking and technology sector leads the way, while the automotive and utilities sectors dominate the losses.
In other European markets, the Spanish IBEX increases by 1.10%, the German DAX by 0.99% and the French CAC by 40 1.04%. London rose 1.18% and Amsterdam 1.36%, while Milan rose 0.84%. Here, the PSI registers one block of the least obvious confirmations, increasing by 0.88%.
Equity balance prices on the “European benchmark”, which has not been seen since March 2020 (as shown in the chart below), were overcome by market concerns about a possible rise in interest rates in the euro area as early as July, Christine Lagarde, Governor of the European Central Bank, said in a speech this week.
European stocks have fallen for the fifth week in a row, the longest loss since February, according to data collected by Bloomberg.
Concerns about inflation, the economic slowdown, monetary policy and the war in Ukraine were the main reasons for the recent red market.
“While the shares are not yet available for purchase, there are already opportunities to buy bonds during this clearly volatile period,” explains Ricardo Saldanha, custodian of Aviva Investors Global Services, in an interview with TV.
Despite the war and macroeconomic scenario of European listed companies in the first quarter, strong performance reinforced this buying sentiment, in the hope that equities will strengthen later despite the current low prices.