Wall Street has closed far from intraday lows (Dow Jones: -0.98%; S&P 500: -1.71%; Nasdaq: -1.87%) after bouncing in the last hour of negotiation (4% has collapsed at the worst times of the day). Despite the good employment data of the month of February, the market only has eyes for the coronavirus and its economic impact globally, as investors fear that it will cause recession. The performance of 10-year American bond has set a record low below 0.7% and volatility has skyrocketed again, while the Petroleum It has collapsed, although the weekly balance for the New York Stock Exchange is slightly positive.
The US economy created 273,000 new jobs last month, well above the expected 175,000. In addition, the unemployment rate has fallen to 3.5%, the lowest level of the last 50 years.
However, the coronavirus is already emerging as a threat to hiringn, which could be stopped in the coming months, which has made all the alarms go off.
We remember that the Dow jones bounced 5% on Monday, collapsed 3% on Tuesday, rebounded 4% on Wednesday and it collapsed almost 4% this Thursday. As he points out José María Rodríguez, analyst of Bolsamanía, "Volatility is here to stay," since last week it was the most bearish for New York indices since the 2008 financial crisis.
Moody's Investors Service It has cut its forecast of global growth due to the economic impact of the global expansion of the coronavirus. We have reviewed our growth forecasts in 2020 for all G20 economies, "the agency said.
The agency expects these countries, as a group, to grow a 2.1% in 2020, 0.3 percentage points less than your previous forecast. China it will grow by 4.8%, according to its forecast, compared to the 5.2% previously estimated; Y The US will grow at a rate of 1.4%, compared to 1.7% anticipated.
The 'King of bonds', Jeffrey Gundlach, said that the Fed He panicked as he cut the types by 50 basis points. "If we look at history, once the Federal Reserve is afraid, it will show again with another reduction, so I do not rule out that it will do so again in two weeks."
Within the business front, Facebook It is the first large Silicon Valley company to take the lead. Those from Zuckerberg have sent their employees home and canceled their trips, after canceling events like the popular F8.
In addition, the CEO of JPMorgan, Jamie Dimon, has had to be operated urgently for a heart problem from which he is recovering satisfactorily. However, the bank's shares have fallen 5%.
In other markets, oil West texas falls 8%, up to 42 dollars, after the 'no' from Russia to the 1.5 million barrel slashing proposed by OPEC to face the collapse of demand due to the coronavirus. The fall in demand now amounts to 6 million barrels per day, up to about 33 million.
For its part, the ounce of gold rebounds 0.2%, to $ 1,672, close to seven-year highs and in its most bullish week since 2011. From the US bank Citi, have updated their forecast on gold and now consider a scenario in which the prices are directed towards 2,000 dollars within 12 to 24 months.
In addition, the profitability of 10-year American bond bounces up to 0.78% after marking historical lows below 0.7%. The fall in bond yields puts additional pressure on the banking sector, since the KBW Banks Index, which brings together the main American banks, has collapsed 4% after sinking 6% on Thursday. Finally, the euro 0.6% is appreciated and changed to $ 1,1305 and the VIX Volatility Index It has risen 7%, up to 42 points.
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