August 12, 2020

The perfect storm tombs the Bag

The perfect storm is sweeping the strongest market values. And Spain is no exception. The Madrid parquet closed yesterday at 8,522 points, its lowest level so far this year and below the level of 8,600 points. The fall of almost 2% of the selective Spanish, the largest in fifteen days, responds to the depressing German data, whose economy is at the threshold of the technical recession after its GDP has contracted 0.1% in the second quarter of the year. The trade war between the United States and China, also with American offensives across the Rhine, It is bleeding German exports and paralyzing the production and investments in goods and equipment of the European locomotive. The contagion effect on the rest of Europe is already noticeable and, although the Spanish economy seems to resist thanks to the boost in domestic consumption and the export pulse, less affected by US tariff increases, the alarm has already begun to sound for the strong linkage of sectors, such as the automotive industry, to the good health of Germany. What began as a tropical downpour has been increasing in intensity with the failure of the president of the acting Government, Pedro Sánchez, to abandon the interim situation in which the country's legislative machinery is located. With some new general elections on the horizon and the prospect that the result will keep the blockade again, The economy remains with the autopilot and many companies begin to curb their investments until clarifying a little more the uncertain panorama. In case the market trend was no longer adverse enough, this week started with the arrival of southern winds. The triumph in the primaries, prelude to the first presidential return next October, of the candidate «Kirchnerist», Alberto Fernández, punished even more the most exposed Spanish values, such as Prosegur. The possibility that populism will relocate to the Casa Rosada scares investors, in a country that is still trying to get out of the strong crisis of 2018 with the injection of 56,000 million from the IMF.

In addition to the lousy German data, it has also been known today that the Chinese industrial production grew only 4.8% last month, the smallest increase in more than 17 years, which shows the impact of the commercial war with the United States. In addition, retail sales grew one point less than expected, 7.6%, and unemployment increased.

With this concatenation of adversities, all great values ​​fell: Telefónica 4.21%; Banco Santander 3.38%; Repsol 2.98% (the price of a barrel of Brent oil was less than $ 59); BBVA 2.52%; Inditex 1.6% and Iberdrola 0.07%.

Of the rest of the IBEX companies, ArcelorMittal lost 7.72%, followed by three small banks: Bankia fell 5.04%; Bankinter 4.88% and Banco Sabadell 4.78%. Telefónica took fifth place.

. (tagsToTranslate) h. huntsman

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