The coronavirus continues to expand fear and uncertainty, affecting the real economy in the short term
The increases experienced in America and Asia, over 4%, make water in the old continent. The coronavirus continues to expand fear and uncertainty, affecting the real economy in the short term. The shy bullish opening has vanished throughout the session today.
At the macroeconomic level, after the surprising decision of the Federal Reserve to cut rates by 50 basis points, investors do not rule out the idea that the European Central Bank and the Bank of England take stimulus measures to deal with the effects of the virus in the economy.
With regard to the Spanish stock market, the index has tried to end the fourth session of stock market traces without success. While we were approaching the level of 9,000 points, the reality is that the Spanish selective approach again to 8,600 points. On this occasion, it has been the banking sector, together with the rapid spread of the virus in the national territory, responsible for the brake on the Ibex35. The new scenario of interest rate and minimum cuts in debt interests cloud the future of banking. The sectors linked to tourism remain the most punished. Meliá, Amadeus and IAG continue to accumulate falls in the parquet.
Another of the main affected by the virus is oil. OPEC countries have reached an agreement to reduce oil production after a fall in demand for Covid-19.
Currently investors are beginning to consider whether the fall caused by the spread of the virus is an exaggeration of the market, or the bags were really overvalued and the virus has placed it in its place. Time will prove right.