Days of declines in major world indexes that continue to weigh on prices both recession fears and possible rate hikes to combat high inflation will highlight the slowing world economy. In the UK, the new government has indicated that unfunded tax cuts and energy subsidies have not yet been completed, leading to higher stock prices and lower bond prices.
The victory of Giorgia Meloni’s far-right Brothers of Italy party hit the euro, which hit $0.95, its lowest level in two decades. The rule of the right-wing coalition would mean a change in policy for the Eurozone’s third-largest economy compared to the more technocratic role played by Mario Draghi.
In Europe, the Eurostoxx 50 lost 0.18%, extending its losing streak since Sept. 12. Thus, the FTSE MIB stands out with a 0.67% gain after the right-wing bloc’s victory in the election. In the UK, the FTSE 100 Index was up 0.03%. The Stoxx Europe 600 indicator fell, influenced by the utilities, real estate and telecommunications sectors, compared to technology, consumer and consumer staples, which posted gains.
In Spain, the Ibex 35 closed below 7,600 points after falling 0.99%. Among its components, the largest revaluation occurred in Fluidra (3.12%), Sacyr (2.22%) and Grifols (0.65%). In contrast, the largest declines were recorded in Colonial (-3.71%), Solaria (-3.09%) and Mapfre (-2.72%).
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