Wall street registers a large rebound of 4% although cases of infections and deaths from Covid-19 continue to grow in USA, having not yet reached the peak of the virus crisis. However, investors discount that cases do begin to decline, especially in European countries such as Spain, France and Italy. Also, the hope of a truce between Saudi Arabia and Russia It also gives wings to the markets, especially to oil.
"We are beginning to feel optimistic," he says. Bill ackman, from Pershing Square. "The cases are close to reaching their peak in New York and the rest of the country is almost in full quarantine," says this renowned manager.
In business matters, more and more companies are shouldering their shoulders to face the crisis. The last case is that of Manzana, which will manufacture one million masks a week for healthcare personnel around the world.
It should be remembered that the crisis of the outbreak is increasingly felt in the United States. Last week the country added other 6.6 million additional unemployment claims. Unemployment, in turn, rose more than expected even despite not yet reflecting 100% the impact of the virus on the country's economy.
MORGAN STANLEY SEES A MARKET FLOOR
"Crises lead to bailouts and this time the rescue has been extreme being a health crisis. As a result, the inevitable credit crunch could be cut short this time, which makes us shoppers in the fallsIt is the assessment on the current scenario of the stock exchanges that the analysts of Morgan Stanley and that differs from that made by other experts such as those of HSBC.
In his opinion, the excessive leverage, both in corporate credit and in shadow banking, is the reason why the downward movement of the stock markets has been so fierce. "Forced liquidation has passed. With unprecedented monetary and fiscal support and high capital risk premiums, we maintain our view that the worst is behind us"
According to your assessment, the current levels they are points of purchase in a horizon of 6 to 12 months. "We are not saying we are going to go straight up from here, and there is likely to be a pullback after the last rally," they added. However, their base scenario is that March lows are the lows for this bear market for most stocks.
In the raw materials market, the Petroleum West texas falls 5%, up to $ 27, pending the completion of the cut in production negotiated by OPEC and Russia. The 'black gold' registered its most bullish week in history after anticipating Donald trump that this cut can amount to 10 million barrels per day.
For his part, the euro depreciates 0.13% and changes to $ 1.0793 and the profitability of 10-year American bond it rises to 0.65%. For his part, the VIX volatility index it falls 4% to 45 points, after setting a new record high at 85.47 points a few sessions ago.