Second consecutive session of sell-offs in tech giants’ stocks; the Nasdaq posted new losses of 2.22%, closing at 25,587 points. After hitting successive highs, Wall Street experienced a sharp correction—a development that, for now, appears to be more a case of artificial decompression than a systemic problem.
At a time when private credit could emerge as a destabilizing factor, according to reports—once again—from HAMaileon, major firms are limiting the scope of liquidations (Apollo Debt Solutions being a prime example) in New York, where they need to “open and close” safety valves.
Taking into account that Trump cannot run in the November midterms (Nov. 3) if… blood is flowing around Wall Street. This is what traders are “signaling” as the base scenario, based on the positions they are taking in leading indicators, with the VIX/CBOE at 19.49 points, the U.S. 10-year yield at 4.473%, and S&P 500 futures 500 futures trading at a marginal premium of 7,390 points.
Earlier, Asian markets showed signs of stabilization, with the latest drop in oil prices contributing accordingly. WTI is at $72.67, and Brent at $76.51.
Mixed trends for DAX and CAC 40 futures; EuroStoxx Banks futures—considered a bellwether for traders on the Greek stock exchange—are trading at a discount. The index is down 1.05% at 295.04 points, a correction following the DTR’s 2.18% decline to 2,822.97 points.
With a monthly gain of 9.85% and a quarterly gain of 28.37%, yesterday’s wave of sell-offs was expected. The combination of a highly active presence of “hot money” and the bank-heavy nature of the “shallow” stock market creates corrections like yesterday’s.
National Bank, Eurobank, Piraeus Bank, and Alpha Bank once again saw increased trading volume, but this time following Cenergy Holdings and PPC. In the first case, this was due to the mini-placement that took place—with pre-arranged orders passing through the order book—and in the second, following a significant reallocation of positions among “strong hands.”
It should be noted that the company’s stock is currently forming an upward trend, from €18.63 at the capital increase to a high of €23.56, with undiminished demand from fund managers—primarily American—who did not receive all the shares for which they had subscribed in the capital increase. Demand that, according to reports, is expected to continue.
Alongside the banking sector, profit-taking also occurred in the majority of blue-chip stocks—with the exceptions of ElvalHalcor, Cenergy Holdings, and Viohalco—as part of a partial consolidation of positions. As was the case in yesterday’s session, whether this trend continues will also depend on the direction of the market in Europe, with the EuroStoxx Banks index serving as a bellwether.
According to brokers, stock-picking strategies are likely to be employed based on developments in individual cases. The Metlen Energy & Metals group has set an annual EBITDA target of 200 million from gallium; ADMIE is set to issue new shares following its capital increase; Plan B for Lamda Development if the deal with the Italian investors of ION does not close, and we are also awaiting the general meetings of HelleniQ Energy and Lavipharm tomorrow, and those of Alpha Bank, Real Consulting, ELASTRON, and Petropoulos on Friday.
Also on Friday, the subscription period for Attica Department Stores will close, with the process beginning today.