Bullish close on Wall street (Dow Jones: + 0.62%; S&P 500: + 0.83%; Nasdaq: + 1.43%) after a bearish opening out of fear of a worldwide outbreak of the coronavirus. Investors have re-entered the market after the Federal Reserve (Fed) have announced that will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity.
The signs of a second wave of cases in the United States have been added a re-emergence of 100 new infections in Beijing, the heart of China, which has caused the initial falls. However, following last week's sharp correction, investors have further appreciated the central bank's new measures.
By technical analysis, the movement of the S&P 500 has been very interesting, as it has once again tested the support of 3,000 points, marking an intraday low of 2,965 integers.
However, from that important support area, where the 200 sessions average, the main world indicator has rebounded with joy until the 3,060 points (its all-time high in mid-February is 3,393 points).
Now that the reopening is taking place, there is a fear of collateral damage such as less social distancing unleashing another wave of the virus, some analysts say. Among the states that continue in this de-escalation process are California, Alabama, Florida and North Carolina, that lately have experienced a spike in infections.
"The deterioration caused by the coronavirus in some states will continue to weigh on the market, although to achieve a truly negative impact should affect more of the country"observe the experts of Vital knowledge in your last report.
But amid so much pessimism, there is room for the most optimistic, like Morgan Stanley. "We maintain our positive vision for the markets in the United States”, Explain the strategists of the investment bank. Analysts assume that, in the autumn, a new outbreak of the virus will take place; but they state that "will be manageable and will result in selective locks"
Across the Atlantic, the Ibex has fallen almost 0.5% after having dropped more than 2%. In Asia, the bags have closed in red with special prominence of the Japanese Nikkei (-3%) after that aforementioned outbreak in Beijing.
In other markets, the West Texas oil up 2% to $ 37.03. Besides, the ounce of gold falls 0.16%, to $ 1,734, while the euro It appreciated 0.56% and was changed to $ 1.1317. Finally, the profitability of 10-year American bond rebound to 0.71%.
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