Big bourse bounce-back
The European stock markets enjoyed a positive session yesterday after the hammering they took in previous sessions.6 March 2008
MADRID - The European stock markets enjoyed a positive session yesterday after the hammering they took in previous sessions. The general feeling, however, was that the recovery amounted to no more than a technical rebound.
The Spanish blue-chip Ibex 35 put on 2.52 percent to close at over 12,900 points, a level that throws up a number of uncertainties in the short term. The 13,000-point mark has now been transformed into strong resistance, and it will take a great deal of effort to break through it and hold above it in markets in which the level of volatility has taken everyone by surprise.
Turnover in the Spanish continuous market came in at EUR 3.978 billion, including EUR 3.459 billion in open-market deals.
There are a number of reasons behind yesterday's recovery, although the one that stands out was that what took place was a partial correction of previous over-selling. On a more technical level, the explanation lay in a possible rescue plan for US bond insurers, and on a more practical level, the recovery in the services sector in the United States, with the index of activity up 5 points in February, but still below the 50 point level that separates growth from a contraction.
The volatility in the bourses coincided yesterday with see-sawing movements in other markets, particularly the foreign exchange market where the dollar fell at one point to below 1.53 against the euro.
There were similar brusque movements in the price of gold, which moved above USD 990.5 an ounce, while oil tested new highs after OPEC announced it was maintaining production at current levels after reaching the conclusion that the surge in prices was due to factors other than those related to supply and demand.
[Copyright EL PAÍS / RAFAEL VIDAL 2008]