Today, the stock markets close one of the most complicated periods in history with the pandemic as a backdrop. The benchmark stock index in Spain, the Ibex 35, try to hold on to the 7,200 points to end the half, during which it has collapsed up to 23%. The outlook is not rosy either, given that futures are trading negatively and in the early stages of today’s session, the selective has once again turned red, a trend that continues in the middle session.
An evolution that contrasts with the last closing of the Wall Street Stock Exchange, in which the Dow Jones rose 2.32%, oblivious to the outbreaks of the virus that affect various areas of the country, where up to 120,000 new infections were recorded weekend. However, in its opening today, the New York index suffers slight losses.
Undoubtedly, the predominant trend in the parks is mistrust, motivated by the worrying spread of the coronavirus in countries where it was already considered controlled. This is the case of China, who has decided to confine 400,000 people for an outbreak in Anxin County, or UK, which has had to isolate Leicester, where 300,000 inhabitants live. In addition, during the day today we will have to see how investors react to the provisional agreement reached by the European Union to open its borders to 15 countries, including the United States, Russia and Brazil.
Likewise, other events are expected that could influence the progress of the selective companies, such as the shareholders meetings of some companies -Colonial and Enagás-, as well as the appearances of those responsible for the American Federal Reserve (Fed) and of European central bank (ECB).
Most outstanding ups and downs
In the Spanish market, INE data confirming a 5.2% drop in gross domestic product (GDP) in the first quarter of the year compared to the previous quarter have not helped to raise the spirits of investors. After twelve noon, earnings are slim. Iberdrola, Colonial and Red Eléctrica de España are on the side of the listed companies that are leading the rises, which rise above 1%. On the opposite side, CIE Automotive, Banc Sabadell, Bankia and Santander lost 4%, in the first case, and 3%, the rest.
In the raw materials market, the price of a barrel of Brent quality oil is at $ 41, with a drop of 0.9%, while Texas is down around 1% and is trading at $ 39. For its part, the Spanish risk premium stands at 93 basis points, with the interest required on the ten-year bond at 0.46%.