The PSI closed up +0.44% at 9,478.42 points, managing to be the exception in a Europe in negative territory. In Lisbon, Galp shares rose +1.03% to 21.62 euros, Altri led by advancing +1.28% to 4.750 euros, Mota-Engil gained +1.14% to 4.804 euros, Teixeira Duarte advanced +1.16% to 0.4810 euros, Sonae rose +1.00% to 2.0250 euros and EDP Renováveis gained +0.81% to 13.77 euros. On the negative side, Semapa fell -2.12% to 20.75 euros and NOS lost -1.07% to 4.976 euros.
The widespread decline in European stock markets was due to the reigniting of tensions in the Middle East, which drove up oil prices and increased the likelihood of interest rate hikes by both the Fed and the ECB as early as September. According to MTrader analysts, sovereign debt yields are reaching their highest level since 2008. There was some relief after the revelation that US industrial activity slowed more than expected and that job openings were below expectations in July. The Stoxx 600 lost -0.56%, the EuroStoxx 50 fell -0.80% to 6,386.98 points, the DAX tumbled -1.1%, the FTSE MIB dropped -1.33% and the IBEX 35 lost -0.75%.
Several explosions were heard this Tuesday in southern Iran, near the Strait of Hormuz, shortly after the US announced new airstrikes against Iranian targets. The US military announced it carried out attacks against targets of Iran's Revolutionary Guard. Oil surged as a result of these tensions, with Brent advancing +3.68% to $93.82 per barrel and WTI crude surging +4.34% to $89.48.
Public debt is on an upward trajectory. German 10-year debt yields rose 1.96 basis points to 3.34%, Portugal saw yields rise +1.07 basis points to 3.68%, Italy +2.1 basis points to 4.17% and Spain +1.97 basis points to 3.79%. US 10-year debt is up +3.01 basis points to 4.79%.
