The alternations of signs for the General Index of the Greek Stock Exchange lasted only a few minutes, as from that point on the potential sellers clearly took more initiatives, pressuring the Index to the fringes of 2600 points.
From there also began the attempt to react, in a session characterized by significant volatility, which also increased turnover (the highest of the last four sessions.
The “leader” of the daily movement was once again the heavyweight banking sector, with the banking index falling as low as 3062.14 points (-2.71%), flirting with the third consecutive declining session, while it was also the one that led the reaction from the intraday lows, with the ASE following the corresponding reaction of the European markets, after the labor market data announced in the US.
It is worth noting that at the day’s lows, declining stocks were five times the advancing ones, from the total of the titles that make up the FTSE25, only EEE was being saved with a positive sign, while the improved, but poor final ratio of advancing – declining stocks, confirms that the reaction was followed by a small number of stocks.
Regardless of today’s reaction from the intraday lows and according to the converging estimates of domestic analysts, “the course of government bond yields will continue to maintain the cautious climate for stocks, in combination with the new upward movement recorded by oil prices. The wave of selling in bonds is more intense in countries with higher debt. Increased attention to overleveraged companies, but also to markets that, in recent months, have outperformed”.
According to an experienced analyst – contributor to the column, “international markets are faced with an abrupt repricing of the cost of money. The yield of the 10-year US Treasury exceeded 5.10% and the 30-year 5.4%. The rise in US yields is being transmitted to mortgage rates, burdening the real estate market, while in Japan the yield of the 30-year reached 4.14% and new historic highs, increasing the risk of reversal of the yen carry trade and repatriation of capital. A decisive factor is now energy. Brent returned above $105, reinforcing inflationary pressures once again. The combination of expensive oil and persistent inflation increases the likelihood of further interest rate hikes by the major central banks. With government bonds now offering particularly competitive yields, the environment becomes clearly more demanding for stocks, increasing the chances of profit-taking and correction, after the significant rise that has preceded in international markets”.
“The intensifying wave of mass selling in the government bond market is pushing the average yield of Global Sovereign debt very close to 4%, a level that has not been recorded since 2007. This rise threatens to increase borrowing costs for Governments, Businesses and Households, while at the same time limiting corporate profits and making stocks less attractive”, reports Bloomberg.
With the above data, it follows that all market eyes are turned to the next announcements of the central banks.
It is recalled that according to the economic calendar, the next meetings - announcements of the ECB are scheduled for 29/10 and 17/12/2026.
The corresponding ones of the Fed are scheduled for 28/10 and 9/12/2026.
The next scheduled monetary policy meetings of the BoJ are for 30/10 and 18/12 and of the BoE for 5/11 and 17/12.
According to CME’s FedWatch tool, “there is now a 73% probability that the Fed will raise interest rates by a quarter of a percentage point in October”.
“The area of 2640 points constitutes the previous ‘springboard’ for the move toward this year’s highs and therefore, a close lower than this specific zone will noticeably burden the technical picture, increasing the chances of a deeper correction. Confirmed loss of 2618 points will lead the General Index toward 2566 and the open ‘gap’ at 2535 – 2499 points”, stresses Manos Chatzidakis (Beta Sec.).
According to a veteran market factor, “the latest sessions came to confirm all those who estimated possible strain – correction of the domestic market, after the triple rebalancing and the high expectations that accompanied it, with the international conjuncture appearing rather helpful, in the climate of controlled liquidations”.
On the other hand, as we approach the end of the period for publishing half-year financial results, that is at the end of September, the pace will intensify mainly from mid- and small-cap companies.
According to the scheduled announcements of first-half results, today AKTR publishes, while the week concludes tomorrow with the announcements of TRASTOR, VIOKA, INLIF, FRIGO, EYATH, OLTH, FLEXO, ASTAK and EVROF.
Meanwhile, the CEO of Euronext, Stéphane Boujnah, sees strong momentum in new company listings in Greece, who, speaking to Bloomberg, estimates that “the turmoil in international markets has not eliminated companies’ willingness to raise capital through the Stock Exchange”.
With mixed signs and marginal changes the major European markets, with active investors having focused their attention on oil and the bond market, but also on the macro data being announced.
More specifically, the yield of the US 2-year note is moving at 4.86%, the 10-year at 5.11%. The yield of the 30-year at 5.40%. The yield of the Greek 10-year note at 4.402%.
On the other hand and according to the US Department of Labor, initial claims for unemployment benefits fell to 197000 in the week through September 19, versus 201000 expected by economists in a Reuters poll.
Market attention is also on the Summit between the American President, Donald Trump and his Chinese counterpart, Xi Jinping.
The US Treasury Secretary, Scott Bessent, announced that the US and China agreed to a two-month extension of their trade truce, as Xi Jinping arrived in America for his first State visit here in eleven years.
The General Index moved between 2653.22 (+0.08%) and 2604.71 points (-1.75%). At 17.00 it stood at 2639.51 (-0.44%) and completed trading at 2642.23 points, with daily losses of 0.33%.
Turnover at 414.3 million, of which 59.2 million concern pre-agreed transactions (TITC, BYLOT, OPTIMA, ALWN, AEM, ΜΟΗ, GEKTERNA, FRLK, DAA, SAR, PEIR, PPC, BELA, EUROB, ADMIE, ALPHA, KRI, OTE), with PEIR, EUROB and ETE accounting for 44% of the total gross transaction value.
Of the total turnover of 414.3 million, 389 million concern transactions in FTSE 25 stocks.