It was short the bullish trail of financial valuations, which had been completing a week of healthy price recovery, until this adjustment was fully halted this Friday and left market operators again at the mercy of the uncertainty.
The Shares in the US and Europe yielded around 4% this Friday, to return a good part of the gains obtained in the session on Thursday, when the S&P 500 and Dow Jones indicators climbed more than 6 percent.
The losses in three major Wall Street indices came after member countries of the European Union failed to agree on a plan specifically to address the coronavirus outbreak in the region that today is the most affected in the world.
It was not different outlook for Argentine assets that even lost more than central countries’ financial securities. The shares, whose dollar prices had consolidated a five-wheel bullish transition, traded at the close with a violent average 8.5% drop in dollars, as reflected in the behavior of the ADR on Wall Street. The panel S&P Merval yielded 5.6% in pesos, to 24,058 points, after cutting 3.2% on Thursday.
“He world, to face this mandatory situation, use resources and announce stimulus packages to that effect. They are which we lack due to our own crisis. Unfortunately, the markets are open and ours too, with the pandemic all the Bags overturnedOurs too, only that we were already coming wrong and added to the crisis caused by the coronavirus, we feel sunk, “he said. Jorge Fedio, technical analyst at Clave Bursátil.
Meanwhile, the Sovereign bonds they resumed losses on their dollar references, with a 4% average drop, although at a slower rate than the actions, with a Country Risk was again close to 4,200 basis points for Argentina.
Countries like Italy, Spain and France, the most punished for the outbreak, they had asked for the joint issuance of the calls “Coronabonos”, to help raise funds by issuing shared European debt, but other member countries rejected the relief measure during the last night’s discussions.
Added to this was a surprise: the announcement that the Prime Minister of the United Kingdom, Boris Johnson, tested positive for COVID-19, which affected risky assets.
Until Thursday, the main global markets had basting a remarkable recovery for the third day in a row, since investors discount that the $ 2 billion aid package approved by the United States Senate will help offset some of the internal economic damage caused by the coronavirus outbreak.
The bad data on unemployment claims and the record of infected globally by the United States they put pressure at speed to which the (Trump) government should make transfers provided to households. “ SBS Group.
Due to fear of the advance of the COVID-19 in the US, who became the country with the most cases in the world when overtaking China, the losses in the New York stock markets worsened, where the Dow Jones cut about 915 points, to be in 21,637 integers, especially weighed down by the aeronautical giant Boeing (-10.3%)while the selective S&P 500 it fell 3.4%, to 2,541 integers; and the composite market index Nasdaq, which brings together important technology companies, slipped 3.8% on the wheel, to 7,502 integers.
By a wheel, that of Thursday, Wall Street overcame the bad data provided by the US Department of Labor, which reported a unprecedented increase in unemployment claims in the North American country. But on Friday sales were triggered, which expanded in the last hour of the New York conference.
Although the different governments of the world intensified their efforts to mitigate the economic blow of the virus, the pandemic itself has shown few signs of decreasing outside of China.