The Ibex and the rest of European stock markets fell this Tuesday by 2% on average. The Spanish selective is now 1.5% pressured by sidewalks, banks and by Repsol, which suffers from the collapse of oil. West Texas May futures are they sunk 300% in the last day and fell into negative territory. Analysts explain that this collapse to negative "It essentially means that producers would pay to get rid of the crude.".
June Brent futures now sink 19% and those of West Texas 23%, up to $ 15.56, which indicates that the crisis situation in crude oil persists.
In response to the tremendous decline in the oil market, it has been announced that Saudi Arabia is considering cutting production as soon as possible, instead of waiting until next month to apply the cuts. Donald Trump, for his part, has said that will ask Congress for permission to buy oil, or will store it in the Strategic Petroleum Reserve (SPR). Trump has also claimed that the US may consider stopping shipments from Saudi Arabia.
The 'mega-movements' in the oil market are having a huge impact on stocks. The European, American, and also Asian stock markets are being dragged due to the collapse of the price of energy. Hopefully things will settle down to some extent at some point, but in the short to medium term experts expect tension and volatility to continue.
In Asia, beyond the 2% falls on average due to oil instability, it is news that the North Korean leader, Kim Jong Un, is in critical condition after an intervention. South Korea's Daily NK, which specializes in North Korean affairs, said Kim was undergoing treatment after undergoing cardiovascular surgery on April 12.
In another order of things, the ZEW index of economic sentiment in Germany stood at 28.2 points in April compared to -49.5 points in March, while in the euro area it has improved to 25.2 from -49.5 points last month. At the business level, Enagás has published results. Profit rose 14.7% in the first quarter. The company has said that the 2020 accounts and the dividend should not be affected by Covid-19. Grifols has also announced figures, with a quarterly profit improvement of 63%.
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