Earnings in Wall street, which prolongs its rally for the past few days and allows the S&P 500 clearly overcome the resistance of 3,000 points and Dow Jones approaching 26,000 integers. The Nasdaq, who had led the climbs so far, already caresses her historical maximum from mid-February when trading at 9,500 points. All this in a day in which investors have discounted numerous references.
In the economic scene, the final revision of the US GDP has shown a contraction of the 5%, slightly above the 4.8% anticipated a few weeks ago.
Although the effects of the crisis will begin to be felt even more in the second quarter of the year. The consensus anticipates a contraction that can range between 20% and 30%.
The agency Fitch Ratings has maintained its fall forecast for the United States GDP in 2020 at -5.6%. The macroeconomic stimuli have increased in the last month and the liquidity injected by central banks This is an unprecedented response, which he considers positive.
On the other hand, initial unemployment claims They have rebounded at 2.12 million, almost in line with the 2.1 million anticipated. Fitch added that “a return to economic normality is likely to be a slow and bumpy process“. The rupture of the labor market (US unemployment is expected to peak at 20% in May) and the social distancing ongoing will weigh heavily on the consumer spending after the crisis, while companies will be very cautious with the capital expenditure, he warns.
For his part, the Federal Reserve (Fed) Beige Book, a document that provides a detailed evaluation of the economy by the twelve US regional central banks with information collected before May 18, has warned that US companies are finding it difficult to resume business.
Furthermore, the April Durable Goods Orders 17.2% have plummeted, a historical drop but somewhat less than the expected drop of 19%. Excluding the Transportation item, orders fell 7.4%, almost half the forecast 14% drop.
At a geopolitical level, Hong Kong refocuses the eyes of the world. China has approved this Thursday its security law to subject the city in a clear show of force in the face of USA.
In other markets, the West Texas oil falls 0.4% to $ 32.71. Besides, the ounce of gold rises 0.7% to $ 1,739, while the euro 0.26% appreciated and was changed to $ 1,1032. The European currency maintains its strength after announce the European Commission a rescue fund of 750,000 million euros. Finally, the profitability of 10-year American bond rebound to 0.71%.