The policy makers of the European Central Bank are meeting on Thursday for what may have suddenly become a crisis meeting, as the Russian invasion of Ukraine threatens to derail economic growth in the eurozone and complicate the ECB’s path out of negative interest rates. .
The Governing Council of the ECB was scheduled to meet in Paris on Thursday at lunchtime for an “informal meeting”.
The objective was to prepare a decision by March 10 on the likely end of the ECB’s bond-buying stimulus program and pave the way for the first rate hike in more than a decade to tackle shockingly high inflation.
However, Russia’s invasion of Ukraine overnight it has changed the picture by raising the prospect of rising energy costs, financial turmoil and declining trade for the eurozone.
The rate hike is good news for the financial sector, but given the instability that is causing the conflict in Ukraine, we see significant falls for the IBEX 35 banks and the one that loses the most ground in Banco Santander.
As explained Dario Garcia, XTB analystthe bank is joined by two things: geopolitical tension and the announcement that Ana Patricia Botín will now have more limited powers within the bank, in favor of its CEO, José Antonio Álvarez, to meet the demands of the ECB.
The entity gives up 6.52% at 3.0235 euros at this time.
The value has two important supports: a first support, which can coincide with an oversold in the RSI indicator, at 3 euros per share. And the following, “typical of the main structure of the index, a triangular structure, which has been maintained since February of last year”, at 2.75 eurosthe extreme support it could reach in the coming days.
Check here the technical indicators for Banco Santander, which show that, despite today’s falls, it is in the bullish phase.