Investors in the European markets are moving upward, while their counterparts on the Greek stock market are marginally lower.
The strengthening of the premium for the S&P500 to 0.37% and from 7,795 points is facilitating buyers in Frankfurt and Paris, with the banking sector the “lever” of the upward correction currently under way.
At $102.74 for Brent, at 5.255% for the US 10-year and with Germany’s equivalent at 3.471%, the EuroStoxx Banks is gaining 0.64% to 291.76 points.
Traders are betting on divergences in government bond yields to correlate their moves (buying/selling) in shares of European banks. This specific dimension was highlighted early in the morning by CHAMaileon, noting that given “... the pressures on government bonds from the rise in oil and natural gas, combined with the euro near a 17-month low, banking is among the sensitive sectors.” A correlation that makes it possible to hedge a position in a bank stock with a corresponding one in a bond/debt instrument.
Reasonably, in a “shallow” market with a bank-heavy character where “foreign hands” have particularly increased exposure, volatility is commensurate.
As happened on Tuesday (with rushed buying) and Wednesday-Thursday (with similarly rushed selling). A “tail” on the sellers’ side had already become apparent from the pre-opening session that it would be liquidated today. From 3,037.28 points at the start of the session and in the range between 3,041.74 and 2,991.92 points thereafter, the orders of sellers-buyers.
From the composition of trading up to earlier, the correction for the DTR does not appear to have been completed. With losses of 4.51% over the course of a week and with a correction now of 6.08% on a monthly basis, the DTR has a short bias in the short/medium term, with the result that there are trapped investors in the four systemic stocks. For the trend to turn long again, some positive shock will be required in the next period. Something that, with the current data, does not appear to be in sight.
However, stockbrokers estimate that in yesterday’s mini “sell-off” (with increased transactions/turnover) part of the intraday/trading positions of “fast money” in the sector evaporated.
An additional “thorn” is the jump in September inflation to 5%, with natural gas 55.2% more expensive (!) and gasoline 22.5% (!!).
Turnover at 130 million euros, with 18 million through packages, with transactions of 17.3 million shares, of which 14.3 million shares were in the stocks of Eurobank (4.41), Piraeus (9.59) and National (16.23), Alpha Bank (4.237). With buyers prevailing in National and Alpha Bank.
Fourth in the relevant ranking is the share of Motor Oil, with targeted selling after it became known about the explosion at the facilities (with two seriously injured). Down to 62.90 (-5.12%) the almost reflexive selling shortly before 13:00. Optima Bank follows, also with selling down to 14.14 euros.
AKTOR at 9.39 (2.85%), GEK TERNA at 40.92 (1.99%), PPC at 22.52 (-0.27%) and HelleniQ Energy at 18.25 euros complete the top ten.
Up to 12.02 euros the orders in Allwyn’s stock, with a weekly change of plus 8.46%, as investors recover part of the losses that had preceded. A catalytic factor is the election result in Brazil, which was highlighted by Eurobank Equities analysts.
Buyers are prevailing in Metlen Energy & Metals (48.10), Viohalco (16.70), ElvalHalcor (3.41), Lamda Development (6.02), AEGEAN (11.02) etc.
The ratio of stocks with a positive/negative sign stands at 62/59.
Veralis (1.14), AVAX (3.325), ADMIE (4.135) stand out with gains. According to a stockbroker, the ADMIE share can be considered “trend-driven” after Mitsotakis’ statements that the GSI will proceed without discounts on sovereign rights.