Bearish session on Wednesday in the European stock markets, which fall around 0.5% on average because of fears about the political and economic uncertainty in the European Union (EU) generated by the Brexit vote. The Ibex falls more than 1%, which makes it lose 8,000 points.
The growing anxiety over the consequences of the UK decision to leave the EU has continued to affect markets. Asian stocks have fallen overnight with investors seeking refuge in safe haven values, which has led to bonds at historic lows.
Investors have begun to look at safer assets, such as US Treasury bonds. The stock market crash began on Tuesday, as investors have begun to look at safer assets , such as US Treasuries, the yen and the dollar after the Bank of England relaxed the regulations to encourage investors. Banks to lend more money.
Concern over the polarization of the vote and growth dragged the US stocks to close down on Tuesday, reaching the minimum historical 10-year Treasury bonds.
On the other hand, the UK’s Minister of the Interior, Theresa May, has taken the lead in the race to find a new leader for the Conservative Party and for the British Prime Minister. May took advantage in a first round of voting on Tuesday against Liam Fox, who was eliminated from the race with the least amount of votes and Stephen Crabb who withdrew from the dispute, leaving Andrea Leadsom and Michael Gove and Theresa May to wait of another round of voting this Thursday.
Also read: Technical analysis office: we solve your doubts about all types of market values
Italian banks remain the target of investors. The shares of Banca Monte dei Paschi di Siena were suspended after the European Central Bank asked the bank to cut its bad debt by 40% over the next three years, according to Reuters. On the other hand, Italian regulators have temporarily banned short trading on the stock market.
At the macroeconomic level, the words of Mario Draghi, who speaks at 09:00, Madrid time, are particularly relevant. Data on non-farm ADP employment, service PMI, non-manufacturing PMI of the ISM and minutes of the Federal Reserve (Fed) meeting in the US are also presented.