Take a fresh look at your lifestyle.

Wall Street anticipates declines after last week's rally and OPEC cut

0



Wall street anticipates moderate falls in a festive day on many European exchanges and after the historic production cut agreed by the OPEC and its allies. Otherwise, investors continue to digest all the news related to the coronavirus crisis.

Beyond the raw materials market, it should be remembered that a good part of the profits recorded by Wall street last week they took place thanks to the advances against the virus and the new stimulus package of the Fed.

Anthony Fauci, director of NIAID (National Institute of Allergy and Infectious Diseases), said this Sunday that the outbreak is easing in the country and they are already moderately optimistic.

Fauci also took the opportunity to warn that the economy will not return to its previous state as easily once the state of alarm is lifted.

Confirmed infections in the US are close to 550,000, more than any other country in the world. Of all of them, 189,000 are concentrated in the state of New York. The death toll across the country exceeds 21,000. Donald trump has criticized the American press for its late action in containing the Covid-19 as "false news".

On the other hand, this Monday one of the most popular measures of the Trump Administration comes into force to face the crisis and cushion its impact on the economy of families: $ 1,200 checks for those who have declared a maximum income of $ 75,000 in 2019 and 2018.

In any case, the Dow Jones it rebounded almost 13% last week and the S&P 500 advanced 12%, so they have reduced their annual decline considerably. The Dow and S&P 500 'just' lose 17% and 13.7%, respectively, and the Nasdaq It has fallen 9% so far in 2020.

The group of countries known as OPEC + agreed to reduce production in 9.7 million barrels per day, the largest production cut in history. President Donald Trump tweeted that the deal "will save hundreds of thousands of energy jobs in the United States," adding that it will be "great for everyone." The oil West texas it rises just 1%, up to $ 23, having discounted this cut in previous days.

Goldman Sachs believes that oil prices will continue to fall in the coming weeks since the cut agreement is "historical but insufficient". In his opinion, this pact is unlikely to offset the drop in demand caused by the coronavirus.

In other markets, the euro depreciates 0.2% and changes to $ 1.0912, while the profitability of 10-year American bond slightly up to 0.75%. And the VIX volatility index up 3%, up to 43 points.

Within the business front, entities such as Bank of America, JP Morgan and Johnson & Johnson release their results this week. Finally, beyond last week's rally, the big indices remain red from their February highs.

. (tagsToTranslate) Wall (t) Street (t) anticipates (t) falls (t) after (t) rally (t) last (t) week (t) cut (t) OPEC (t) Category: All (t) Category: Market Report (t) Category: Company News (t) Category: Economic News (t) Category: Political News (t) Category: Pulses (t) Category: Market Pulse (t) mostread_ultimas (t) mostread_fundsnews (t) mostread_empresas (t) mostread_economia (t) mostread_politica (t) mostread_mercados



Leave A Reply

Your email address will not be published.