Wall street increases profits above 3% after leaving Bernie Sanders the presidential race and leave only Joe Biden against Donald trump. The New York Stock Exchange closed Tuesday with slight falls and intraday lows. Investors saw how a 1,000 point rebound in the Dow Jones evaporated, the largest downward turn of the index in the last 12 years, which gives an idea of the volatility which continues to prevail in the markets, despite the fact that the situation has improved in the last two weeks.
Positive cases of Covid-19 in the US have risen to 400,000, while the death toll has risen to 12,911, 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.
The Trump Administration, widely criticized for managing the crisis, has its own plans to curb the pandemic. Your new roadmap goes through study the reopening of small cities and towns Little affected by the virus in an attempt to relaunch the economy and keep it low.
In any case, as Bloomberg points out, the main cities and foci of infection such as New York will continue to be shut down. The president's chief financial adviser, Larry kudlow, hopes that the country can return to normal operation in a period ranging from four to eight weeks.
MINUTES OF THE FEDERAL RESERVE
Members of the Federal Open Market Committee (FOMC) of the United States Federal Reserve (Fed) discussed during their last monetary policy meeting, held on March 15, the possibility of recommend to the country's banks to suspend the payment of dividends due to the crisis derived from the Covid-19 coronavirus, as the ECB has done in Europe.
And on the business front, the Twitter CEO Jack Dorsey, after announcing that it donates 1,000 million dollars to fight the coronavirus.
Also, McDonald's It has shown a 22% drop in its comparable sales for March globally, another example of the great impact that the coronavirus is having.
Across the Atlantic, the Ibex it has fallen moderately after the failure of the Eurogroup. European finance ministers are scheduled to meet again on Thursday to reach an agreement and form a common front against the virus. On Asian exchanges, the mixed sign has been installed on all of them. It's news Wuhan, after what China has lifted restrictions on traveling to the city that was the epicenter of the outbreak.
At a strategic level, "it is wrong to assume that the coronavirus pandemic is under control", He says Chris Gannatti, director of the analysis team at WisdomTree, on the change of vision of investors regarding the impact of the Covid-19 crisis.
As he explains, "It is surprising that even in the midst of the coronavirus pandemic, the S&P 500 is above 2,600 points"After a big drop of more than 33% in a month, the index has risen 23% since the end of March."Investors have clearly begun to think things will improve"But caution must prevail, he insists. Because although" there are opportunities, "one must know how to identify them.
OTHER MARKETS AND TECHNICAL ANALYSIS
In the raw materials market, the Petroleum West texas 10% has shot up, up to $ 26, 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 depreciates 0.3% and changes to $ 1.0856 and the profitability of 10-year American bond it goes up to 0.75%. Finally, the VIX volatility index falls 8% to 42 points, after marking a new all-time high in March at 85.47 points.
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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