The Athens Stock Exchange failed to hold on to 850 units, having, like international markets, taken a strong liquidation as the prospect of aggressive central bank interest rate hikes reinforce investors’ appetite for risk aversion. The pressure also spread to the bond markets, with Greek 10-year yields rising to 4.21%, the highest level since mid-June, and the spread widening to 262 basis points, hurting bond prices.

In the absence of positive catalysts, and in early September, sellers seem to dominate the AX again, notes Depolas Investment Services. Corporate results took a backseat as the investment community focused on what currently appears to be a negative outlook. At the same time, he adds, macroeconomic data are constantly being revised, although it is too early to talk about climate change. Given this data, the brokerage sees continued pressure both at home and abroad as likely.

In more detail, in the statistics of yesterday’s meeting, the General Index recorded a fall of 1.54% and closed at around 843.17 points, and the turnover amounted to 71.36 million euros.

The large-cap index fell 1.58% to 2028.15 points, while the mid-cap index fell 1.66% to 1335.05 points.

The prospect of aggressive interest rate hikes by central banks is causing major nervousness in the markets.

Among non-banking blue chips, Jumbo (-3.09%) posted the biggest losses, followed by Coca-Cola, Quest, Biohalco, ELVALHalcor, Motor Oil, Mytilineos and OTE, with losses of more than 2%. Sarantis posted a 3.65% gain and OPAP closed up 1.29%.

The banking index fell 1.91% to 545.37 points, with Eurobank down 2.86%, Alfa Bank 1.62%, National Bank 1.36% and Piraeus Bank 0.95%.

An improved assessment by a number of analysts of an increase in the ECB intervention rate by 0.75% versus 0.50% of their initial estimates set fire to eurozone government bond yields, says Fast Finance economist Lucas Papaioannou. But higher government bond yields lead to higher corporate bond yields, even for companies with strong fundamentals and low credit risk. If the 0.75% upside scenarios are confirmed, we will see further deterioration in the bond markets and higher yields on both government and corporate bonds.

Moreover, with inflation in the eurozone at 9.1% and all fronts open, both domestically and internationally, nothing predisposes to improving conditions in the next six months. Especially for Greece, the political risk is now here again, while the acquired speed thanks to tourism gives a positive picture of the macroeconomic indicators in 2022, but it is not at all certain that this phenomenon will repeat with the same intensity in 2023, especially in the election year.