The US currency outperformed other global currencies and rose more than 1% on fears of a global recession and speculation that the euro could enter parity with Mt.
Fears of a recession sent major European stock markets tumbling with losses of more than 3%, in line with Wall Street’s negative opening, which led to a 10% drop in oil prices and a depreciation of the euro against the dollar. The lowest since 2002.
The IBEX 35, the main index of the Spanish trading platform, fell 2.48%, the biggest drop since June 12, and was at 7,959.4 points, its lowest level since the beginning of last March and which puts annual losses at 8.66%.
But other bourses on the old continent showed a 2.99% drop in Milan; 2.91% in Frankfurt; The Euro Stoxx 50, which includes Europe’s biggest listed companies, fell 2.68% in London and 2.68% in Paris.
In times of crisis, people often seek refuge in the world’s largest reserve currency. The dollar index rose more than 5.7% in the April-June period, its best quarter since 2016, according to Bloomberg.
The euro has depreciated since 2002
The euro, which has been falling for months due to rising global interest rates, fell to 1.23 to the dollar, the lowest since December 2002 and the closest to parity against the dollar.
The common currency began to fall after the release of the PMI index for June of the main countries of the eurozone, which recorded growth, but at the slowest rate in the last 16 months in France; In Germany last half year, in Italy and Spain last 5 and 3 months.
According to S&P Global, the consultancy that compiles the index, June was “hit by the first contraction in manufacturing output in two years and slower growth in business activity in the services sector.”
Inflation and rise in interest rates
Inflation, further pressured by the war in Ukraine and sanctions on Russia and interest rate hikes by central banks, is dragging down the economy and many investors fear the strategy could lead to a recession.
Lower forecasts for global oil demand sent benchmark Brent crude in Europe down as much as 10% at the close of stock markets in Europe at $102 a barrel, a price not seen since May 11.
TTF natural gas ended the session down 0.5%, though shortly before midday it hit 175 euros per megawatt hour, the highest in four months, on fears that supplies from Russia could fall as a result of the Ukraine war. .
(24 with EFE and FRANCE)
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