The European stock markets are trading with modest increases and with doubts on this second weekly session. There is fear of the possibility of a new outbreak of the virus in the middle of the global de-escalation process, and this has investors concerned. Today Spain has announced that will quarantine international travelers starting May 15, following in the wake of other countries. The world is aware that it must start moving not to sink economically, but at the same time you know this involves risk and measures are being set to try to contain it as much as possible.
As for the Ibex, José María Rodríguez, an expert in Bolsamanía, warns that “things change a lot or We will finish looking for the March lows at 5,800 points“The selective is trading too close to its key support of 6,580 points.” What is really worrying, although it is not new, is the intrinsic weakness of our index compared to the set of European stock markets … and Wall Street, Better not even talk, “adds Rodríguez.
Large values, such as ArcelorMittal or IAG, they are wrong. Both continue to fall today after sinking yesterday. The first has announced a capital increase, and the second has said that things are further distorted by these plans to quarantine international travelers in different countries. Banks, like Sabadell, they are also behaving very negatively, with those new historical lows that the entity marked yesterday. And, meanwhile, both companies do not stop presenting results negatively affected – in most cases – by the coronavirus. Yesterday at closing published Indra, which has suspended the dividend and withdrawn targets and which today is going under. Today they have announced DIA or Amadeus figures. The first has reduced its losses for the first quarter by 5.7%, to 142.6 million euros. The DIA case is one of the few in which the pandemic impacts positively. For its part, Amadeus is the best on the Ibex after its figures.
China released its latest inflation data this morning. The CPI for April was 3.3%. Economists expected 3.7%, while March’s reading was 4.3%. “The weakness in oil prices is likely to have been a factor in the bad readings. Asian stocks have fallen today due to unconvincing data from China, the Asian giant’s strained trade relations with the US, as well as concerns about a second wave of Covid infections 19“says David Madden, an analyst at CMC Markets in London.
For his part, Haruhiko Kuroda, the head of the Bank of Japan, has stated in an appearance in the Japanese parliament that the central bank will do “everything it can” to deal with the crisis.
As for oil, it is trading with moderate increases after the volatility that it experienced last day when Saudi Arabia announced that it would cut production by an extra million barrels a day from June. Kuwait and the United Arab Emirates followed in the footsteps of the Saudis and revealed plans to cut production as well.