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Wall Street prolongs its historic rebound despite the large rise in unemployment

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Wall street It continues its historic rebound and rises more than 1% after the strong gains of the past few days and after learning of a large increase in weekly unemployment data, which is beginning to show the impact of Covid-19 on the US economy.

The continuous stop requests They have rebounded slightly to 1,803 million from 1,702 million, above the 1,708 million anticipated. Although the most relevant data is that of initial unemployment claims, which have shot up 3,283 million from 282,000 last week, well above the consensus estimate, which anticipated a rise of between 1 and 2 million.

Is about the highest number recorded since there are statisticsBerenberg experts say. "Yes, the increase in jobless claims was widely expected, but these numbers are still surprising. The worst is yet to come and US employment will plummet, we hope that temporarily ", they add.

To calm markets and public opinion, Federal Reserve Chairman Jerome Powell, has granted an interview on television, an exceptional fact that reflects the dimension of this crisis. He has promised this Thursday that the central bank will continue to use the tools it has to fight the economic slowdown caused by the coronavirus crisis.

"We are not going to run out of ammunition, that will not happen. We still have room for maneuver in other dimensions to support the economy, "Powell said in an interview with NBC's 'Today' show.

In other markets, oil West texas falls 3% to $ 23.75, the euro 0.66% appreciated and changed to $ 1.0952 and the profitability of 10-year American bond falls to 0.79%. For its part, the VIX volatility index falls 8% to 59 points.

By technical analysis, the Dow Jones "have a short-term 10% rise potential", as indicated by César Nuez, analyst at Bolsamanía." For the next few days, the most normal thing is that we can end up seeing an extension of earnings to the level of 23,189 points, minimums of the bearish gap that was left on the 12th of this mes ", explains this expert.

"Nevertheless," he warns, "we must not forget that it is only a rebound, so keep in mind that sales could return at any time. "The index is listed at 21,500 points after marking a minimum since 2016 in Monday 18,213 points, so a 17% from minima.

BERNANKE'S WARNING

Ben Bernanke, President of the United States Federal Reserve (Fed) during the Great Recession and responsible for leading the response of the US central bank to the 2008 financial crisis, has commented that "US-approved monetary and fiscal stimuli won't work until coronavirus is contained"

In this way, he said that "nothing is going to work, the Fed is not going to be of help, fiscal policy is not going to be able to help if before we do not do well with public health"If we don't solve the problem of the virus, of the infection, ensuring that the risk has lowered enough before putting people back in the line of fire."

His words are an indirect criticism of Donald trump, who considers it more important not to stop the economy than to contain the virus. In the US, there are more than 69,000 confirmed cases and 1,046 deaths and the epicenter of the outbreak remains the state and city of New York.

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