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The uncertainty due to the effects on the economy of second waves of the pandemic in the world yesterday sank the oil prices and they hit share prices on different stock exchanges.
In Colombia, they promoted the dollar price and they made the stock market fall, although not as strong as in Europe or Wall Street.
(Can read: Dollar reached over $ 3,800 this lunes)
In the London market, Brent oil fell 3.94 percent, while in Colombia the dollar reached at some point above 3,800 pesos and the Ecopetrol share was the hardest hit.
The dollar rose 65 pesos during the day yesterday, compared to the representative market rate (TRM) that was in force.
Since the beginning of the negotiations, the US currency took a leap, since in the opening transactions it traded at 3,780 pesos, 55 pesos above the TRM on Monday of 3,725 pesos.
(Also: Oil prices plummeted this Monday)
Before noon, even, the currency reached 3,802 pesos, and ended up closing at 3,789.5 pesos. During the day, the average trading price was 3,790.65 pesos, and the TRM today will be 3,790.54 pesos.
This jump in the dollar was a response to the fall in the price of oil that yesterday, in its Brent reference, fell 3.94 percent, to 41.43 dollars per barrel.
The drop was caused by fears that a second wave of the coronavirus will hit global demand if restrictions are re-imposed in some countries aimed at containing the spread of covid-19.
The possibility that demand will decline renews expectations that the market will be flooded with excess supply, a scenario that tends to sink crude prices.
(We suggest: European stocks fall more than 3% due to fear of new confinements)
Also, during the day there were signs that Libya is prepared to increase its pumping levels. This scenario has put an end to the revaluation of crude oil last week due to production cuts caused by bad weather in the Gulf of Mexico.
In Colombia, the reduction in the price of oil led to Ecopetrol’s share devaluing 4.49 percent and closing at 2,020 pesos.
Meanwhile, the set of main shares of the Colombian stock market lost 0.75 percent, according to the Colcap index, which closed at 1,197.5 points. In Sao Paulo, the fall was 1.32 percent, and in Buenos Aires, 1.78 percent.
For its part, Wall Street closed at a loss and the Dow Jones fell 1.84 percent after a volatile day marked by the increase in covid-19 cases, the fear of a new wave of lockdowns and the lack of agreement in the United States Congress regarding a new package stimulus.
Additionally, the shares of large banks such as HSBC, Deutsche Bank or JPMorgan Chase were shaken after the revelations of an international consortium of journalists that they allowed and facilitated laundering of dirty money on a large scale.
At the end of the session on the New York Stock Exchange, the Dow Jones ended up cutting 509.72 points and stood at 27,147.70 units. The selective S&P 500 fell 1.16 percent or 38.41 points, to 3,281.06 integers; and the Nasdaq index, which brings together the most important technology companies, fell a slight 0.13 percent or 14.48 points, to 10,778.80 integers.
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The biggest stock market falls occurred in Europe. Frankfurt fell 4.37 percent; Milan, 3.75 percent; Paris, 3.74 percent; Madrid, 3.4 percent, and London, 3.38 percent.
The Eurostoxx50 index of the 50 largest-cap companies fell 3.94 percent. Sales increased in European equity markets due to fears of new covid-19 outbreaks that could force a new lockdown in Madrid, Paris or London.
News pointing to a recovery in the economy, such as the recovery of the German economy in the third quarter after a sharp decline in the second, were not enough to stop the decline.
Furthermore, the president of the European Central Bank, Christine Lagarde, recalled that the euro area economy has not yet emerged from the crisis and needs the support of fiscal and monetary stimulus.
The euro fell to $ 1.1736 after Lagarde’s words and the ounce of gold was down 2.7 percent to $ 1,909.20.
(To continue reading: When Glovo, Rappi and Orders leave, they already dominate homes on the continent)
ECONOMY AND BUSINESS
