“Black Friday” for markets: Sell off in Athens and Europe – New 20-year negative record for the euro

The last session of the week turned into a “black Friday” with the Greek market succumbing to the downward trend of the international markets, despite the effort it made at the beginning of the session to recover above 820 units.

Economic sentiment weighed on today after the announcement of the Greek 10-year bond yield at 57-month highs, as Greece is expected to take a wait-and-see attitude until markets assess the ECB’s new interest rate hike, which is likely to be more aggressive.

At the same time, the “plunge” of the euro, against the dollar, to the lowest level of the last 20 years, again in the background of interest rates, was at the center of the market today.

In this climate, at 17:19 the Athens Stock Exchange (AX) lost the bet with all 800 units, closing at 798.11 units with a drop of 2.39% and the turnover at 61.01 million euros, completing the week with a negative sign and sharp losses.

Intra-sessionally it recorded a higher price at 819.59 units with a rise of 0.24% and a lower price at 795.76 units with a fall of 2.67%. It should be noted that the banks were at the center of liquidations.

Regarding corporate news, let’s recall that yesterday Ellaktor announced the issuance of two bond loans worth 500 million euros and 275 million euros, from ELLAKTOR and AKTOR CONCESSIONS respectively. At the same time, it was announced that an agreement had been reached with a bondholder for the early repayment of the “expensive bond of 670 million euros that he had issued a few years ago.

The stock market “plunge” is also ongoing in the European markets recording similar losses, as investors evaluate the decisions of the central banks on interest rate increases.

In this climate, the pan-European Stoxx 600 stock index lost 400 points, down 2.25% to 390.92 points.

Let us recall that the decision of the US Federal Reserve (Federal Reserve) to increase the interest rates of the dollar again by 75 basis points to the level of 3% to 3.25%, which is a 14-year high, was followed yesterday by the European central banks of of Switzerland (SNB), of Norway (Norges Bank), but also of England (BoE).

Private sector activity contracted in the Eurozone for the third month in a row, with S&P Global’s PMI falling to its lowest level since 2013, amid record inflation that is shrinking demand and forcing some companies to cut output. The only exceptions were the months when lockdown was imposed.

New 20-year negative record for the euro

Europe’s common currency fell nearly 1% following multi-year lows hit today in sterling, the yen and the Swiss franc against a “hard” dollar.

Specifically, today, the euro fell to its lowest level since 2002, down 0.95% against the dollar, while cumulative losses through 2022 have now widened to -16%.

The sell-off in the euro, sterling and other currencies comes as analysts assess that central banks elsewhere are lagging behind the Fed, which appears bent on taming inflation at all costs.

The ten-year Greek bond yield is at 57-month highs
The yield on the Greek 10-year bond rose to 57-month highs, as the EKT continues to raise interest rates.

The spread is set at 255 basis points, with the ten-year Greek bond currently yielding 4.67%. The five-year Greek bond is currently yielding 3.8% and the 15-year Greek bond is currently yielding 4.61%.

The article is in Greek

Tags: Black Friday markets Sell Athens Europe #20year negative record euro

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