Wall street increases losses and falls 1% after confirmation of a second case of Wuhan coronavirus in United States. The WHO He has decided not to declare the health emergency in the face of the outbreak in China, but the global stock markets take this issue with some suspicion. According to Bloomberg, American health authorities have isolated some 60 patients with symptoms of contagion, three of them in New York.
In the Dow jones, Intel 9% is triggered after presenting earnings and forecasts that have been above expectations. Further, American express rebounds 2% after convincing their accounts to the market.
However, the general tone of the market is bearish, since investors have chosen to collect benefits after the accumulated gains in the last months of uninterrupted way.
In negative, Boeing falls 0.7% after confirming that it studies a new production cut of the 787 Dreamliner. Another of the most bearish sectors is that of airlines. Companies like American Airlines and United Airlines 5% are left, affected by the coronavirus crisis. In addition, travel companies such as Trip.com (-7%) and hotel groups such as Wynn Resorts (-4%) lead sales in Nasdaq.
IMPACT OF CORONAVIRUS
There are already 25 dead and more than 800 affected by the pandemic originated in China in mid-December last year. The coronavirus It has not taken long to spread to other countries such as South Korea and Japan despite Chinese attempts to isolate the region.
Is the bag immune to these health crises? "There is concern that the coronavirus will spread rapidly beyond China causing damage to economies and markets. ", the analysts of Charles Schwab. "If we take the SARS virus as an example, the impact of the coronavirus will probably be temporary," those of Wells Fargo.
"We cannot directly relate the epidemics to the performance of the stock market," said those of Fidelity in 2006. "Equities behave unpredictably, although we can never see these phenomena as isolated but to associate them with the rest of the market conditions," they added.
In macro matter, the published data has been mixed. The Manufacturing PMI Preliminary January has been below schedule, but the PMI services The same period has exceeded the forecasts. On the other side of the Atlantic, the decision of ECB which now presides Lagarde sent the bags red, especially the Ibex, by the weight of the bank in the selective.
JAMIE DIMON'S NOTICE FROM DAVOS
From the World Economic Forum from Davos, Jamie Dimon, president and CEO of JPMorgan Chase, said Thursday that the current financial bubble is not in the stock markets or in bitcoin. "It is in sovereign debt".
"At this time, People think that central banks around the world can do whatever they want. But can not. They are intelligent, observe all the facts and try to figure out what to do. But inflation can be the big negative surprise".
If inflation soars unexpectedly, it could force these entities to raise interest rates to help cool the economy. But that would also cause a rebound in bond yields and create problems to governments to deal with the cost of your debt.
"I think it is very difficult for central banks to always make up bad policies (of governments). And that puts them in a trap Do you know someone who has bought a bond at a negative interest rate? I would never buy a bond with negative performance. No, unless forced. In history, every time you see something like that, it doesn't necessarily end well.", he explained in an interview with CNBC.
In other markets, oil West texas falls 2.3%, to 54.20 dollars, while the ounce of gold up 0.5%, to 1,572 dollars. Crude discounts that the coronavirus crisis will reduce global demand in the short term and the precious metal rises before the market preference for refuge assets. For its part, the euro 0.23% is depreciated, up to annual minimums, and changed to $ 1.1026. Finally, the profitability of 10-year American bond falls to 1.68% and the 2-year bond falls to 1.48%.
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