Euro markets are revving up with DAX at the helm

LAST UPDATE 14:00

Major European indexes extended their gains as they tried to recover from sharp losses yesterday, in the wake of Powell’s speech in Jackson Hole that sent a widening wave of risk aversion into global markets.

In particular, the pan-European index Stoxx 600 moving upward 0.75% at 425.94 points, with the banking sector that came under the greatest pressure yesterday today reacting with a jump of 2.7% while the energy sector falls more than 1.2%.

The picture is even better in its high capitalization Stoxx 50 which is reinforced above it 1.5% to 3,623 units.

In the individual European tables, the driver’s seat has been taken by the German DAX where is it to 13,129 units with a jump 1.8%while the French CAC 40 moves to 6,274 units with +1.1%while British FTSE 100 which started its trading week today due to a holiday yesterday shows a marginal rise 0.1% moving to 7,435 units.

In the markets of the region, the Italian FTSE MIB moving upward 1.6% and is at 22,187 units, like the Spanish one IBEX 35 which makes profits 1.4% moving to 8,111 units.

In the movements of individual shares, Ambu from Denmark stands out, which sees its title jump 6%, while, on the contrary, the Swedish investment firm Storskogen moves with losses of 2.5%.

Elsewhere, in his much-anticipated speech at the Fed’s annual conference in Jackson Hole, Wyoming, Jay Powell sent a clear message that the Fed will continue aggressive monetary tightening, even if it means “some pain” for households and businesses, which rattled investors ending the euphoria of the summer rally.

European officials, such as Isabelle Schnabel, a member of the ECB’s Board of Directors, have been moving in a similar tone in recent days, who reiterated her position that the European Bank must move aggressively to limit rising inflation, even if this entails the risk of recession.

On the macroeconomic front, economic sentiment in the eurozone deteriorated again in August, falling to an 18-month low.

Specifically, the economic sentiment index fell to 97.6 points in August from 98.9 in July, moving to the lowest level since February 2021.

Earlier today it was reported that Spanish inflation fell for the first time in four months, although rising energy prices mean the respite in the price rally may be short-lived.

In any case, harmonized consumer prices rose at an annual rate of 10.3% in August, slowing from July’s record high of 10.7%.