Losses on Wall Street after the Historic West Texas oil crash, oil reference for USA, which is sinking 300%, and is trading negative (-37 dollars) for the first time in history. The fall affects the future of May, which expires this Tuesday, while the June futures listed at $ 20, when the normal thing is that it enters 50 cents and 1 dollar above. The crude Brent, benchmark in Europe, falls 8% to $ 25.70.
"The movements we are seeing in the oil market are simply incredible," analysts at Bleakley Advisory Group acknowledge.
Most investors are already focusing on the june contract, which has reduced the trading volume and increased volatility over the May contract, he explained Giovanni Staunovo, an analyst at UBS, according to CNN.
With demand almost paralyzed by the coronavirus, the volume of oil stored in the United States, especially in Cushing, Oklahoma, is on the rise and facilities are about to overflow. This increases the possibility that some American and Canadian producers can start paying customers to empty their storage capacitiesStaunovo added.
In Washington, the Treasury secretary, Steven Mnuchin, has claimed that the Trump Administration and the US Congress are close to closing a deal for a second round of $ 500 billion worth of small business aid. The initial rescue, of 349,000 million dollars, was exhausted already last Thursday.
In relation to Covid-19, positive cases in the US have risen to 760,000 and the death toll has risen to 40,700, according to data from Johns Hopkings University. Donald trump has said this Sunday that the US wants to go to China to investigate how coronavirus outbreak emerged and he has assured that they maintain constant conversations with the Asian country, despite the fact that their requests have been rejected on several occasions.
"Equities and bonds in the US tell us that they see the crisis in a relatively optimistic way because now there is a light at the end of the tunnel," say experts from SLJ Marco Partners.
Beyond this, the case is that the macro data and forecasts do not show special optimism. Last week, it was confirmed that the outbreak has already destroyed 22 million jobs in the US, the largest economy in the world.
Across the Atlantic, the Ibex is down 0.6%, weighed down, among others, by BBVA, Santander and Repsol. In Asia, the exchanges have closed with mixed sign after China has lowered its reference interest rate for the second time so far this year.
Furthermore, the euro depreciates 0.15% and changes to $ 1.0859, while the profitability of 10-year American bond falls to 0.61%. And the VIX volatility index it rises 10%, to 42 points, after shooting up in the worst moments of March above 85 points.
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