Wall street registers 3% drops while the oil debacle seems to have no end. The crude West texas closed in negative territory this Monday for the first time in its history after the May contract fell 305% to -37 dollars; and this unprecedented crash in 'black gold' prices affected New York indexes.
This Tuesday, the situation of 'black gold' is still very bearish, since the future of June on the West Texas falls 42% to $ 11.86; while the future of Brent down 25% to $ 19.18.
The International Energy Agency has warned that the monthly demand for oil in April may be 29 million barrels lower than a year ago and falling to 1995 levels.
And although the oil sector it is not leading the falls this day (it already accumulates a fall of over 45% so far this year), sales have spread throughout the market.
In relation to Covid-19, positive cases in the US have risen to 788,000 from 760,000 and the death toll has risen to 42,300 from 40,700, according to data from Johns Hopkings University. A report produced by the Australian consultancy Institute of Certified Management Accountants claims that Donald trump He has been one of the world leaders that has given the worst response to the crisis. "From outside the US, it is very clear that until now, its handling of the COVID-19 crisis it has been disastrous and could lead to the loss of hundreds of thousands of lives"the document has pointed out.
The renowned investor Mark Mobius, founder of Mobius Capital Partners, has commented that many companies will consider moving their supply chains from China to other countries after the pandemic.
"Many buyers and many people who depend on the supply chain in China now have doubts and are beginning to diversify your supply chain as much as possible to be closer to home"he told CNBC. Countries like Vietnam, Bangladesh, Turkey and Brazil can benefit.
Within the business front, IBM yields 4% after entering 3.4% less in the first quarter while Coke down 3% after publishing its figures. Netflix, one of the most bullish companies of the year due to its business model based on the distribution of online content, will publish its accounts after the market closes.
In political matters, two great news are setting the agenda. The first, the temporary order that Trump will sign to ban immigration in the US in an attempt to protect employment in the world's largest economy.
The second is in the Senate, which has been unable to reach an agreement this Monday for the next aid packages. Another vote is expected to take place on Tuesday to approve measures to support small businesses.
"Market volatility remains intense and a certain pessimism is beginning to seep into investor sentiment in light of the latest news," experts at Nationwide. "Stock markets rose last week in the hope that the worst was over, but that optimism will face headwinds as the reopening of economies," they say.
In other markets, the euro depreciates 0.3% and changes to $ 1.0830, while the profitability of 10-year American bond falls to 0.55%. And the VIX volatility index It rises 8%, to 47 points, after shooting up in the worst moments of March above 85 points.
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