The change of central banks is sinking the world markets – Fall of more than 2.5% for the ATHEX

LAST UPDATE: 15:28

The frustration with the lack of clarity in the mechanisms of protection from the increase of the central banks’ interest rates is reflected today by both the European and the Greek market, recording strong losses. The decline in futures on Wall Street is also significant, as concerns about the recession that may be caused by the tightening of policies are evident.

On the Athens Stock Exchange, the General Index recorded losses of 2.34% at 819.35 points, while the turnover is at 52 million euros and the volume at 16 million units. The FTSE 25 also fell 2.53% to 1,976.94 points, while the banking index lost 3.99% to 524.59 points.

At the same time, the Stoxx 600 index plunged 2.3% to 403.54 points. The pan-European index is heading for the lowest closing since February 2021. The German DAX drops 2.85% to 13,101.01 points, the French CAC 40 loses 2.25% to 5,893.21 points, while the British FTSE 100 plunges 2.35% at 7,101.31 points. In the periphery, the Italian FTSE MIB falls 3%, while the Spanish IBEX 35 falls by 1.5%.

Wall Street futures also suffered heavy losses, as the US Federal Reserve (Fed) raised interest rates the most since 1994. In particular, the Dow Jones futures lost 582 points or 1.90% to 30,071 points while the futures for the S&P 500 are down 89.75 points or 2.35% at 3,704 points. At the same time, Nasdaq futures slipped by 329.75 points or 2.84% to 11,299.75 points.

The great rotation of capital

What we are seeing is a large turnover of large funds into traditional safe havens, until the prospects and intentions are clear. And the ATHEX can not but be in the crosshairs of divestments in high risk markets, even if the presence of foreigners is relatively low in Athens.

What the ATHEX has been trying to achieve in recent months, that is, to improve the quality of its long-standing portfolios, is collapsing within a few days. The crowd at the exit door is large, as one central bank after another tries to control inflation by putting a brake on cheap money, but also on consumption and investment. What will lead this, of course, is the big question, as the last time it was done by Paul Volker, it led the American economy into recession.

Having recovered this memory, the markets are looking for either liquidity or safe investment shelters, until it can clarify the impact that the decisions that are now being made will have on the economy as a whole. And the big issue that now concerns Athens Avenue is when the slump will stop, that is, when the sellers will stop incorporating the worst case scenario for the Greek economy.

On the board

On the board now, Piraeus, Ethniki and Alpha Bank record losses of more than 4%, while ELHA, Viohalko, Eurobank and, Hellenic Petroleum and more than -2% Jumbo, Mytilineos, Quest, PPC, PPA are moving above -3% , OTE, IPTO, OPAP, Sarantis, Lambda, Aegean, Titan and GEK Terna.

The fall in EYDAP, Motor Oil and Terna Energy is controlled, while Ellactor wins 0.12% and Coca Cola is at + 1.03%.