October 1, 2022

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Black Friday in the stock, bond and currency markets

First entry: Friday, September 23, 2022, 5:34 p.m.

Zoghla newsroom

The explosion in bond yields, the sweeping decline in stock exchanges, and the massive losses of the euro and sterling set the scene for another “Black Friday” in the world’s major markets. Only oil has fallen below $90 a barrel, but this is also because investors estimate that due to the Great Recession coming in late, the demand for black gold will also fall.

Euro: Falls to a 20-year low as the Eurozone enters recession

The euro fell to a new 20-year low against the dollar On Friday, after new research was released, it said the slowdown in business activity across the eurozone has accelerated this month and the economy is likely to enter a recession.

In particular, the euro fell 0.9% against the dollar to 97.5 cents, its lowest level since October 2002.

The euro is at 139.4540 yen, 0.8823 against the pound and 0.9561 against the Swiss franc.

The dollar rose 0.39% against the yen to 142.8860 yen.

The pound fell 1.69% against the dollar to settle at $1.1064.

Bond yields are rising along with borrowing costs

Bonds are under heavy pressure, with yields hitting record highs as central banks tighten monetary policy and investors fear a prolonged recession.

The yield on Greek 10-year bonds exceeded 4.64% with the spread against German bonds remaining at 253 basis points.

Borrowing costs for countries, businesses and citizens are increasing dramatically, while the worst is yet to come

It should be noted that the yield on the benchmark German 10-year bond rose above 2% for the first time in 11 years, reaching 2.11%.

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European borrowing costs came under fresh pressure after a new survey showed that the slowdown in business activity across the euro zone accelerated this month and the economy is likely to enter recession.

Billions are lost on European and American stock exchanges

Wall Street’s major stock indexes continued to decline on Friday, heading for another weekly decline as investors fear the Fed’s aggressive action to cut inflation could lead to a recession.

Indexes posted losses for the fourth consecutive day, with the Dow Jones dropping below the 30,000 mark.

It should be noted that on Wednesday the Fed went ahead with another big rate increase of 75 basis points and indicated that it will make another increase in November.

In particular, the Dow Jones fell 418.67 points, or 1.39%, to 2,9658.01 points, and the S&P 500 fell 64.54 points, or 1.71%, to 3,694.44 points.

At the same time, the Nasdaq index recorded losses of 214.16 points, or 1.94%, at 10,853.98 points.

Year-to-date, the Dow is down about 2.4% this week, while the S&P and Nasdaq are down 3% and 3.3%, respectively.

Year-to-date, the Dow S&P 500 and Nasdaq are down 17.2%, 21.1%, and 29.3%, respectively.

Strong pressure in Athens as well

Stock prices came under strong pressure today, with the market dropping below the 800 level amid strong pressure in European markets.

Investors in European stock markets are concerned about a possible recession in the European economy after today’s macroeconomic data on the trajectory of the European economy, which further affected sentiment after successive interest rate increases.

Bank shares were at the center of the liquidation, while the total market capitalization fell today by 1.347 billion euros.

The general price index closed at 798.11 points, recording a loss of 2.39%. It is the lowest close since the July 15, 2022 session (794.62 points).

A higher price was recorded during the sessions at 819.59 points (+0.24%) and a lower price at 795.76 points (-2.67%).

On a weekly basis, the main stock market index recorded a decline of 4.55%, since the beginning of September, declining by 6.80%, while it lost since the beginning of the year 10.66%.

The turnover amounted to 61.44 million euros, while 25,536.711 shares were traded.

The index of large companies decreased by 2.68%, while the index of medium companies decreased by 1.67%.

Among the stocks with higher capitalization, EYDAP (+0.41%) registered an increase.

On the contrary, shares of Piraeus (-5.18%), National Bank (-4.03%), Alpha Bank (-3.43%), OTE (-3.42%), Eurobank (-3.34%), recorded the largest drop ever recorded. Valalcor (-3.30%) and OPAP (-3.28%).

Among the individual indices, the indices recorded the largest gains, while the indices recorded the largest losses

The largest volume of transactions was provided by Alpha Bank and Eurobank, with 8,558,813 and 4,959,001 shares traded respectively.

OTE recorded the highest deal value with 9.608 million euros and OPAP with 8.558 million euros.

17 stocks rose, 101 stocks fell, and 26 stocks remained stable.

The biggest rise was recorded by the stocks: Nafpaktos Textiles + 4.90% and Lavipharm + 3.42%.

The largest drop recorded by stocks was: Tria Alpha (p) -11.93%, and Moda Pango -7.69%.