Wall street It opens the last session of the week with soft gains, of less than 1% in the main indices, pending the evolution of the coronavirus pandemic and at the end of a week that shows a slightly negative balance for US equities.
At an economic level, the September retail sales, which have exceeded forecasts by increasing by 1.9%; and the industrial production of the same month and the consumer survey from the University of Michigan October preliminary.
The data serve to gauge the current situation of the American economy, "all after a bad weekly unemployment data published on Thursday, which highlights the need for new fiscal stimuli ", as the Income 4 analysts say.
In this sense, the trauma of the pandemic "has been profound and the impact may not be easily removed." They are the reflections of the guru Howard Marks, one of the most reputable investors, founder and co-chairman of Oaktree Capital Management. In his opinion, we are facing an exceptional crisis that will take time to resolve.
Even with the disease under control, Marks warns, the economic stimuli applied by governments and central banks are unlikely to reverse all the damage. "A large number of smaller businesses, such as restaurants, bars and shops, will never reopen. Therefore, millions of people will not be rehired to fill the positions they previously held. Thus, expectations of economic recovery must be realistic ", has explained. Thus, it considers that the forecast of many analysts of a recovery in the form of 'V' "has too positive a connotation".
For Marks, the economic recovery that everyone is counting on is not an independent event that is not affected by events. "Rather," he added, "highly dependent on progress against disease, but also of the continuation of tax aid ".
The consumer confidence data from the University of Michigan has also been known. The data shows a new rise in the month of October and has reached the maximum since the pandemic began. The general index has been placed in 81.2 points compared to 80.4 in September in a context of consumers more confident about the economic outlook for next year.
About the vaccine, Pfizer and BioNTech They have reported progress in their experimental treatment against Covid-19, which is boosting the price of both companies and has given the market encouragement.
At the business level, Bank of New York Mellon (BNY Mellon) posted lower profits in the third quarter, while commission and interest-based income also decreased as the custodian bank grappled with the economic fallout from the coronavirus pandemic.
In other markets, the West Texas oil, reference for the American market, falls 1%, to 40.53 dollars, while the euro it appreciates 0.3% and changes to $ 1.1743. Finally, the profitability of the 10-year American bond it drops to 0.72%.
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