COVID-19 infects the American stock exchanges, although Wall Street moderates losses

The main American stock exchanges closed this Friday's session in negative and with Wall Street moderating their losses in the face of the growing fear of the spread of the coronavirus, which has infected investors' spirits and led them to take refuge in safer assets in a devaluation scenario.

"All the turmoil of the markets in recent weeks responds to the fear that exists around the coronavirus. What is being seen is that it is not only a supply shock, as at other times, but on the contrary, it is impacting to distribution channels in the world, "chief economist at Scotiabank Colpatria, Sergio Olarte, told Efe on Friday.

This translates, he added, that "several exporting companies must close because of the inconveniences related to the virus, which means that countries that import those goods and / or services have to look for them, more expensive, elsewhere or even can't access them. "


In the session on Friday Wall Street, the main reference of the Latin American stock exchanges, moderated their losses but again scored red numbers with the Dow Jones finally dropping 256.5 points, to about 25,864.78.

The selective S&P 500 fell 1.71% and reached 2,972.37 integers, and the Nasdaq market composite index, which brings together the most important technology companies, subtracted 1.87% to 8,575.62 units.

The New York parquet has been betting on selling shares and resorting to safer securities such as the 10-year Treasury bond, whose yield fell this morning to a record low of 0.692%, and gold.

In the same way, the Toronto square ended with a loss of 378.97 points, 2.29%, to 16,175.02.


The Price and Quotation Index of the Mexican Stock Exchange closed at 41,388.78 units with a 2.26% retracement in the day after an exchange that totaled 27,148 million Mexican pesos (about 1,349.9 million dollars). However, the Mexican market ended the week with a moderate profit of 0.16% despite the fall of this day.

The Sao Paulo parquet sank 4.14%, up to 97,996 integers, in a session in which operations equivalent to 39,900 million reais (about 847 million dollars) were carried out, and already accumulates a fall of 5.9 % in the week.

The run of Buenos Aires continued in free fall and ended with a decrease of 4.21% to 35,222.43 points after negotiating 703.09 million Argentine pesos (about 10.9 million dollars).

The economist Gustavo Ber said that the international stock market situation affected the Argentine market and "domestic assets had no choice but to accompany the adverse external climate, since they must also withstand uncertainty about debt restructuring."

The main index of the Santiago Stock Exchange, the IPSA, which groups together the 30 most important actions in Chile, concluded at 4,229.46 units, which represents a fall of 2.19%.

So far in 2020, a year in which protests persist in demand for a more just economic model, the Chilean index accumulates a drop of 9.43%.

The S & P / BVL Peru General finished in 18,285.94 integers after lowering 2.31%, while the Colombian run lost 2.83% in its Colcap index, which reached 1,502.84 points.

In February, the S&P Latin America BMI and S&P Latin America 40 indices fell 12% and 11%, respectively, causing Latin American shares to record losses due to the growing fear of COVID-19.


Olarte says that the current situation "is not yet a problem like that of 2008 in terms of impact on financial markets, but the extraordinary measures of governments are similar to those of that time."

"We saw how the Federal Reserve of the United States, for example, lowered the interest rate extraordinarily causing much uncertainty, this situation can cause the world to slow down and a stock market crisis that drags emerging economies," he said.

Crude oil also influenced today, while OPEC failed to convince Russia and other producing countries to increase the current production cut to counter the foreseeable negative impact of the coronavirus on the market and prices, he told Iranian Oil Minister Bijan Namdar Zanganeh media.

Thus, the price of intermediate oil in Texas (WTI) closed with a collapse of 10.07%, placing the barrel at $ 41.28, on the worst day since 2014.


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