Calm opening in Europe after Asia experienced a strong rebound following yesterday's significant losses. The Nikkei index of the Tokyo Stock Exchange, which on Monday experienced its biggest drop since the 1987 crash, has recovered by 10.2% today, paving the way for purchases in Europe.
In other Asian markets, the Kospi index of South Korea recovered by 4% on Tuesday, after dropping nearly 9% yesterday, while the indices of the Hong Kong and Shanghai stock exchanges decreased by close to 0.2% in the final trading session.
Fears of a recession in the US that were strongly felt yesterday seem somewhat less pronounced today. This allows European stock markets to modestly rebound in the early stages of this Tuesday, after calming nerves yesterday with 2% declines for the major continental exchanges. The stock exchanges in London, Frankfurt, and Paris open with increases between 0.2% and 0.3%, the Italian MIB gains 0.4%, while the EuroStoxx 50, the benchmark index in the eurozone, opens flat.
The Ibex 35, which suffered the biggest losses of the year yesterday, has not been able to maintain the anticipated advances at the pre-market and opens with a 0.29% decline, although gradually manages to reverse the situation and return to the green. Among the standout stocks driving the upward trend are Grifols, ArcelorMittal, and Acciona Energía, which experienced some of the biggest declines yesterday, as well as some banks like Sabadell and Unicaja. The biggest declines are seen in Cellnex Telecom, Inditex, Telefónica, and Iberdrola.
"We believe that fears of a recession in the United States seem exaggerated, and we need to wait for more data to be released. Furthermore, yesterday's ISM services data in the US, better than expected and driven by employment and new orders components, helped calm recession fears and halted the panic that was experienced in the markets at the beginning of the session," stated Renta 4 at the market opening.
In the cryptocurrency market, which suffered a harsh setback yesterday, Bitcoin rises by 3% and recovers to $55,000 in value. Ethereum, the second most traded crypto, adds another 4% nearing $3,000. Conversely, the price of gold drops slightly, still above $2,400, remaining in historical highs.
In the forex market, the yen weakens against a strengthening dollar; hence the boost it has given to its market after several sessions of strong gains following its central bank's decision last week to raise interest rates by 0.25%, going against the trend of other major Western banks.