Maximum volatility on wall street, which has risen between 0.5% and 2% (Dow Jones: + 0.95%; S&P 500: + 0.47%; Nasdaq: + 2.30%) after collapsing again in the opening. As an example, the Dow Jones it has recovered a fall of 700 points in less than half an hour and, after marking a minimum of 19,177 points, it has closed at 20,087 points. Although the technological index Nasdaq is the one that has led the rebound, with a gain of 2%, led by Tesla (+ 18%) and chip companies (the Philadelphia Semiconductor Index it has rebounded 4%).
All this after the latest measures announced by the European Central Bank (ECB), Federal Reserve (Fed) and other central banks, like the Australian RBA, to try to alleviate the dire economic impact of the coronavirus.
The ECB surprised last night with a new € 750 billion asset purchase program to try to ease financial tensions in the eurozone. The new program has been called the Pandemic Emergency Purchase Program (PEPP), a Pandemic Emergency Purchase Program.
The Fed also made late-night movements, which announced a new Money Market Mutual Fund Liquidity Facility, or FMLM, to help money market funds meet the demand for redemptions by households and other investors.
"The market reaction to stimulus efforts reinforces our vision that the worst is not over yet"says Charalambos Pissouros, chief analyst of the JFD Group." We repeat that with monetary and fiscal flexibility, lConsumers have to leave their homes and start spending for the engines of the world economy to restart. With infected cases and daily deaths reaching new records day by day, we see that as a very difficult task, "adds this expert.
On the coronavirus, Donald Trump has ordered the Food and Drug Administration (FDA) to investigate whether an existing drug administered to malaria patients It can also be used to treat the new coronavirus.
Hours earlier, the Treasury secretary, Steven Mnuchin, confirmed that the White House's massive economic stimulus proposal would include $ 500 billion for direct payments to Americans by checks of $ 1,000.
The New York Stock Exchange closed last day with falls of 5.5% for fear of the coronavirus, although in the worst moments of the day the Dow Jones 10% plummeted. On Monday, the drop exceeded 12%, the second largest in history, only surpassed by the crash of 1987.
This Tuesday closed with a strong rebound of more than 5%, but sales have returned aggressively. From its mid-February high at 3,393 points, the S&P 500 has plummeted 30%, in one of the most vertical bear markets in history.
In other markets, oil West Texas bounces 25% to $ 25.46, in its best session ever, after plummeting 24% this Wednesday. Black gold discounts investors' fear of a recession, both in the US and globally. In this sense, the initial unemployment claims they have rebounded to 281,000 from 211,000, but analysts expect next week to soar to 2 millions for the closure of shops.
For its part, the euro depreciates 2.3% and changes to $ 1,066 after the monetary bazooka launched last night by emergency by the ECB, which will buy assets worth 750,000 million euros until the end of the year to try to mitigate the effects of the pandemic. The profitability of 10-year American bond slows its climb and falls 9 points, to 1.17%.
By technical analysis, the S&P 500 At some points in the previous session, it lost the support area located between 2,315 and 2,400 points (2018 lows), since it marked an intraday low in 2,293 integers (Although it finally closed at 2,398 points and today it ended at 2,409). Analysts Goldman Sachs do not rule out further falls until 2,000 points if the Trump Administration fails to contain the spread of the virus in US territory.
So far, more than 11,000 positive cases in the US and 161 dead. The state of NY it is the most affected, with more than 4,000 cases; and its governor, Andrew Cuomo, has already warned that it does not expect to reach the peak of the pandemic until within 45 days.
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