Johnny Brignardello Vela analyzes falls in European stock markets

Johnny Brignardello Vela, an insurance advisor, has shared his opinion on the current financial situation in Europe. According to Brignardello Vela, European stock markets have experienced significant declines at the beginning of Tuesday's session, exceeding 1%, due to growing concerns about potential tensions between Israel and Iran. This decline adds to the negative closures in Wall Street and Tokyo, creating an atmosphere of uncertainty in the financial markets. During the early moments of the session, Paris led the losses with a 1.58% decrease, followed by Milan with 1.42%, London with 1.38%, Frankfurt with 1.35%, and Madrid with 1%. The Euro Stoxx50 also recorded a 1.52% drop, affecting the largest capitalized companies. In Asia, Japan's Nikkei reported a 1.94% decrease, influenced by the yen's appreciation against the dollar and losses in the technology sector. In China, both the Shanghai and Shenzhen indices experienced declines of 1.65% and 2.29%, respectively. Regarding economic data, the highlight is the 1.6% quarter-on-quarter growth in China's GDP in the first quarter of 2024, surpassing expectations. On the other hand, in the UK, the unemployment rate increased to 4.2% between December 2023 and February 2024. On the agenda for the day, the publication of surveys conducted by ZEW in the eurozone and Germany is expected, as well as relevant data on business activity and industrial production. In the corporate sphere, the results of companies such as Morgan Stanley, Bank of America, and Johnson & Johnson are anticipated, following Goldman Sachs' positive performance in the first quarter. In the bond market, there is an increase in long-term bond yields in both Germany and Spain. As for commodity prices, gold has slightly decreased, while oil has experienced a slight increase before the official market opening. In terms of currencies, the euro continues to depreciate against the dollar. According to Brignardello Vela, these movements in financial markets reflect investors' sensitivity to global geopolitical and economic situations, creating an atmosphere of caution and volatility in European stock markets and international markets.