[ad_1]
While Wall Street indices fell and Eurozone markets fell by more than 2%, in Chile the picture was not very different, as IPSA lost 0.93%.
A not very good day of the month was the one that the stock markets had in the world, largely explained by the fact that the economic projections are not very encouraging for Europe and the number of applications for unemployment benefits in the US exceeded the projections this week.
With Christine Lagarde, President of the ECB, indicating that the GDP of the euro zone could decrease 12% this year and 3.8 million Americans becoming unemployed Last week, Wall Street forgot the rise it had experienced in the last days and ended the day with a 1.17% drop for the Dow Jones and 0.92% drop for the S&P 500. For its part, even the solid results of Microsoft Corp., Facebook Inc. and Tesla Inc released yesterday did not make Nasdaq rise. So, this index contracted 0.28%.
In Europe, the markets lost momentum yesterday after reports of economic contraction that were released this morning in the Eurozone. The French economy contracted 5.8% and Spain 5.2%. At the regional level, the Eurozone’s GDP fell by a record 3.8% in the first quarter, as a result of the coronavirus pandemic and quarantine measures.
Thus, all European indicators ended in the red, led by the FTSE 100 in London and the pan-European benchmark Euro Stoxx, which fell 3.50% and 2.27% respectively. The German Dax followed, posting losses of 2.22%.
In Asia, the results continued with the good streak they had yesterday. Thus, they registered Growth of 2.14% in the Japanese Nikkei, of 1.18% in the Chinese CSI 300 and of 0.28% in the Hang Seng of Hong Kong.
Positive monthly variations
Despite today’s results, the last days were beneficial for world markets, which caused the monthly variations of each of the indices to end at levels not seen in years. Thus, the Nasdaq led the increases, rising 15.45% in the entire month of April. For their part, the S&P 500 and the Dow Jones experienced variations of 12.68% and 11.08%, respectively. With this, Wall Street ended its best month since 1987.
According to Julius Baer’s head of solutions and products for Latin America, Esteban Polidura, this boom is explained by three main factors: the decrease in the rate of new infections by Covid-19, the investigation of a new emergency medicine in the United States and the different economic stimuli announced globally.
However, for Polidura markets could react negatively in the following months, since the stimuli will take time to permeate in the different economies. “The United States should resent a strong impact in the short term as containment measures against coronavirus began to take effect from the last two weeks of March. For the current quarter, we anticipate an annualized quarterly drop in GDP of 30%, but we warn that the reality could be even worse, since the end of the recession is not yet in sight, “he assured.
Chilean shares down
In Chile the panorama was not very different from that experienced by the rest of the world today, since the IPSA -indicator that joins the main local actions- fell 0.93%.
Thus, the biggest falls came from Enjoy with 7.66% and Mall Plaza with 4.79%.
Despite the bad day, the IPSA ended the fourth month of the year with an increase of 13.45%, its best record since 2009.
->
