The European stock exchanges have moved this Wednesday from falling 2% -3% to closing with increases. The Ibex has risen 0.71% when it was falling over 2% this morning. The selective touched the support of 9,000-9,100 points and, from there, it recovered. The experts of Bolsamanía do not rule out that it rebounds now to the area of 9,500 points. All this has occurred while the news about the spread of the coronavirus in Europe intensified, with 12 infections already in Spain, 11 deaths in Italy and two deaths in France. Everything is confusing and happens very fast now. In any case, what seems clear is that volatility is here to stay.
- 11.468,700
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Wall Street on Tuesday experienced another session of sharp falls (-3% on average) and in Asia the declines have also been imposed this morning. Experts point out that investors have finally realized that global economic growth can stop as the effects of the coronavirus spread. This causes consumers to stop spending and supply chains are stunted because workers and consumers stay home, explains Michael Hewson, chief strategist at CMC Markets in London.
"For the past 12 months or so, the consumer has been the only pillar that has boosted the world economy, helping in the process to push the stock markets to their recent records," Hewson emphasizes.
Analysts point out that, now that politicians have begun to close borders, to impose restrictions on movement and quarantines, investors seem to be preparing the ground for the "inevitable" profit and income reductions that "will likely" appear in the coming weeks and months
In business, the news of the day in Spain has been the results of Iberdrola (+ 5.11%) and Cellnex (-2.04%). In addition, the latter has announced an agreement with Bouygues Telecom to invest 1bn in the next 7 years in fiber optics. Attention also to Aedas Homes (+ 7.07%), which has earned 32 million euros in 2019 and has announced the payment of its first dividend.
On the political level, investors will also be watching the dialogue table between the Government and the Generalitat that meets on Wednesday.
As for the macro data of the day, few references of interest.
