The Ibex 35 is down 2.88%, to 6,634.90 points, after closing at the lows of the day. The Spanish selective has been pressured by the steel companies, the banks, Repsol, which suffers from the collapse of oil, and Telefónica. West Texas May futures plunged 300% last day and fell into negative territory. Analysts explain that this drop to negative "essentially means that producers would pay to get rid of the crude."
- 11.435,700
- -0,28%
June Brent futures are now down 19% and West Texas futures 23% to $15.56, indicating that the oil crisis remains.
In response to the tremendous downturn in the oil market, it has been announced that Saudi Arabia is considering cutting production as soon as possible, rather than waiting until next month to apply the cuts. Donald Trump, meanwhile, has said he will either ask Congress for permission to buy oil, or 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 down 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 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 from 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 dividend should not be affected by Covid-19.Grifols has also announced figures, with a quarterly profit improvement of 63%.
