Equity markets remain skeptical about the real impact that the coronavirus crisis may have on the global economy. Despite the important buffer measures being carried out by the Central Banks, today the Bank of England announced a reduction of its rates of 0.50%, investors prefer to remain cautious in the absence of land in the indexes.
The ECB will have to move token in the next few hours, the impact of its measures would be quite limited, as Lagarde already slid today. The falls on Wall Street, indices such as the SP & 500 lose more than 3% after opening, do nothing but increase the fear of investors who do not finish seeing at these levels adequate prices for their long-term strategies. At the corporate level, the punishment of companies linked to tourism is again highlighted. Meliá and IAG yield another 5% in the session to accumulate losses of 40% in a last month of real nightmare for its shareholders. Iberdrola, Cellnex and Acciona continue to be the main support bastions for the Ibex35, cushioning, only in part, their falls.
Looking forward to the rest of the week, we expect the market situation to remain unchanged, with volatility predominating. The measures that could be introduced by the ECB should have a very limited impact on the behavior of our listed companies. The current situation is of total uncertainty and the scenario is completely unpredictable in the short term.