European markets have turned negative, as has the Greek stock market since early trading.
Is the discount on S&P 500 futures widening? as tensions in the Persian Gulf remain high, causing oil prices to spike compared to earlier levels and the VIX/CBOE index to rise above the 20 threshold to 21.72 points.
From 24,517 points on the DAX at the start of the session to 24,122 points just a short while ago (at 2:20 p.m.). An almost reflexive—vertical—correction for the index, as concerns intensify over a new “spike” in inflation. One day before the ECB’s announcements—with a 25-basis-point hike to 2.25% on the benchmark rate already priced in—an increasing number of analysts are not ruling out at least one more.
On the Greek stock market, right from the start of the session, sellers had the upper hand due to the ex-dividend date for shares of Eurobank and National Bank, with the sector facing a heavy climate and developments surrounding the Katseli law.
From 2,682.59 points—with a downward gap—the first sales hit the General Index, with sellers becoming more aggressive as the session progressed.
This was followed by the "turnaround" of the EuroStoxx Banks index and the release of ELSTAT’s May inflation data—already on an upward trajectory at 5.2% (and rising)—further worsening the mood among investors.
The latest sell-offs in bank stocks pushed the index down to 2,638 points, with the 2.42% decline setting the tone for the rest of the market as well.
Selling pressure intensified on the four systemic bank stocks after 2:00 p.m., with the correction exceeding 3%.
Piraeus Bank shares were at €8.85, National Bank at €14.23, Alpha Bank at €3.81, and Eurobank at €3.872.
Turnover stood at 102 million, shortly after 2:30 p.m., with 15.2 million via pre-arranged orders. Of the total 12.6 million shares traded, 7.3 million were in banking stocks.
There was also comparatively higher trading volume for PPC, GEK TERNA, Jumbo, Allwyn, Metlen, Viohalco, and others on the sell side, with most cases involving shares that had outperformed in the previous period.
DEI shares at 21.90, GEK TERNA at 42.72, Jumbo at 22.54, Allwyn at 13.29, Metlen at 41.46, and Viohalco at 19.24.
With European markets in correction mode, sellers dominating European bank stocks, and the domestic market showing signs of “running out of steam,” as one broker aptly noted, the trend is likely to be downward for the rest of the week.
Motor Oil shares are trading at €39.48, with reports indicating that the eurobond (€400 million) was oversubscribed by 3.5 to 4 times.
OTE shares are at 18.50, AIA at 10.15, HelleniQ Energy at 10.09, and Coca-Cola HBC at 51.40—the only four FTSE25 stocks trading in positive territory.
The positive-to-negative ratio stands at 29/88, indicative of the prevailing market sentiment.