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Wall Street continues to buy after strong gains on Monday


Wall street registers increases close to 2%, although it has risen more than 3% in the opening, after the very strong gains of over 7% recorded by the New York indices this Monday. Investors discount the worst of the Coronavirus health crisis has passed, despite the large increase in cases and deaths from Covid-19 registered in the United States.

President Donald trump has criticized the World Health Organization (WHO) considering that it failed in its initial warnings about the pandemic and discouraging the travel restrictions it imposed on China.

Positive cases of Covid-19 in the US have risen to 380,000, while the death toll has risen to 11,850, according to data published by Johns Hopkins University. Although it seems that the peak of infections in New York, the most affected city, is gradually subsiding.

Despite the recent recovery of some indices, the US stocks are still in bearish territory. Is the case the S&P 500, which continues to accumulate a collapse of the twenty% from their annual highs. However, with Monday's rebound, the S&P 500 has recovered about 20% from its 52-week low marked on March 23.

Some analysts point out that investors they have not yet fully discounted the damage that the crisis will do to business profits. "We still believe that the probability that the March lows will be tested is high and will probably be surpassed before all this ends," experts at Miller Tabak.

Larry kudlow, Trump's chief economic adviser, has commented that "I hope and pray that only a few weeks to go for the economy to reopen. "


In this sense, the Institute of International Finance (IIF, for its acronym in English) has warned that global debt will experience an increase "dramatically" due to the fiscal response put in place by the countries to face the challenges of the crisis generated by the Covid-19 coronavirus.

In a report published this Tuesday, the entity has warned that debt issuance rose to 2.1 trillion dollars in the month (1,925 billion euros), compared to the monthly average of 900,000 million dollars (825,138 million euros) between 2017 and 2019.

Green has also been strongly imposed in Asian parks and on the Old Continent. In the Spanish case, the IBEX 35 It has advanced 2.3% this Tuesday and has recovered 7,000 points.

In the raw materials market, the Petroleum West texas up 1.4%, up to $ 26.45, waiting for the production cut to be negotiated OPEC, Russia and other countries. The 'black gold' registered its most bullish week in history after anticipating Donald trump last Friday that this cut may amount to 10 million barrels per day.

For his part, the euro appreciated 1% and changed to $ 1.0900 and the profitability of 10-year American bond it goes up to 0.75%. Finally, the VIX volatility index it fell 2% to 44 points, after setting a new record high at 85.47 points a few sessions ago.

And by technical analysis, the Dow Jones has rebounded from 18,000 points, March lows and that represent the 50% Fibonacci retracement of all the accumulated rise from the 2009 lows. Its behavior in the coming weeks will be key to check if there is a return to the March lows or if, on the contrary, the market calms down.

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