The Stock Market is sinking due to tensions between the US and China




The Ibex 35 3.03% plummets in the mid-session on Monday, which led the selective to stand at 6,712.9 integers at 12.04 pm, in a context marked by the tensions and accusations between the United States and China about the origin of the spread of the coronavirus, what It could lead to new trade disputes. In fact, US President Donald Trump himself has threatened to break the trade agreement with the Asian country.

This weekend, the United States Secretary of State, Mike Pompeo, declared that there is «a significant amount of evidence»Which demonstrate that the new coronavirus that has caused a global pandemic started in a laboratory in the Chinese city of Wuhan, the epicenter of the disease, something that China has denied.

"I can say that there is a significant amount of evidence that this virus came from a laboratory in Wuhan," Pompeo said in an interview with ABC's 'This Week' program, although he did not point out that the virus had been created by those responsible for the laboratory.

In this context, investors will pay attention this week to the ruling of the German Constitutional Court on purchases by the European Central Bank (ECB), which will be released on Tuesday, and the United States unemployment report, to be published this Friday.

In Spain, phase zero of the de-escalation plan begins this Monday with the conditional reopening of shops and restaurants, after learning that the Government foresees a 9.2% drop in GDP this year and an unemployment rate that will rise to 19%, while for 2021 it estimates a rise of 6.8% in 2021 and a decrease in the unemployment rate to 17.2%.

After falling 1.89% on Thursday and closing April with an advance of 2.02%, the Ibex 35 defended the psychological level of 6,700 points, although as the morning progressed it placed itself at the limit of the threshold each time.

In the middle session, only three stocks were trading positive: Telefónica (+ 3.21%), Cellnex (+ 1.19%) and Viscofán (+ 0.09%). On the losses side, the falls of Merlin Properties (-7.98%), IAG (-7.8%), ArcelorMittal (-7.32%), Repsol (-6.33%), Banco Sabadell ( -5.79%) and BBVA (-5.4%).

In this scenario, the barrel of West Texas Intermediate (WTI) oil, benchmark for the United States, was trading at $ 18.26, while Brent crude, benchmark for Europe, was priced at $ 25.76.

Likewise, the rest of European exchanges they followed the same trail than the Ibex 35, with falls of 4.17% for the Cac 40 in Paris, 3.6% for the Dax in Frankfurt and 2.95% for the Mib in Milan. The index with the least decrease in the average session was the Ftse 100 in London, with a decrease of 0.39%.

For its part, the Spanish risk premium rose to 142 basis points, with the interest demanded on the ten-year bond at 0.847%, while the price of the euro against the dollar stood at 1.0936 'green notes'.


Source link