The mood in global stock and commodity platforms remains extremely negative in view of the rapid worldwide spread of the coronavirus COVID-19, and markets still have to fall, I believe financial analysts.
“Sentiment in global stock and commodity platforms remains extremely negative. By Thursday evening from a fall could not resist even gold, quotes, which has fallen by 4%, falling below $ 1,600 per ounce,” notes the analyst of IK “VELES the Capital” Elena Kozhuhova.
According to her, the European Central Bank (ECB) could not yesterday “to please the “bulls”, and now the exchanges will have to wait for government actions and possible fiscal measures to support the economy”.
The head of IAC “Alpari” Alexander Razuvaev believes that the markets “still have to fall”. So, experts say, “the value of all Russian stocks and indices is derived from oil prices”. “With the price of oil Brent $25-30 fair level of the dollar-denominated RTS index 600-800 points. So still have to fall,” warns the analyst.
Recall that us stock indices according to the results of yesterday’s auction showed a sharply negative attitude. The Dow Jones Industrial Average lost 9,99% and was at around 21200,62 points. The value of the index of wide market S&P 500 declined 9.51% to 2480,64 points. The index of technology companies NASDAQ fell by 9.43% to 7201,80 points, according to “Finam”.
Such a crushing fall of the stock exchanges in a single day was the second worst in US history, after the “black Monday” in 1987. Even in the Great depression such failures did not happen”, said PRIME.
Pressure on the exchange on Thursday has rendered the statement of the President of the United States Donald trump about introduction since March 13, the 30-day ban on entry into the US from Europe due to the coronavirus. Earlier this week, the world health organization (who) declared the outbreak of the novel coronavirus COVID-19 pandemic.
Leading share indicators of the countries of Western Europe closed yesterday in a strong minus. The British FTSE 100 fell by 10.93% to 5234 points, French CAC 40 — by 12.28% to 4044,26 points, German DAX — by 12.24% to 9160,7 of the item, Italy’s FTSE MIB by 16.62% to 14949,5 points, Spain’s IBEX 35 — by 14.61% to 6350 points.
The Russian stock market finished Thursday in the red zone. The ruble index Mosberg plunged 8.28% to 2286,40 points, the RTS index — by 11.03% to 966,40 points.
As States IAC senior analyst “Alpari” Anna Bodrov, “on Thursday, the Russian stock market continued to fall amid growth fears about the spread of this pandemic coronavirus and a new round of reduction of prices on oil”.
In this case the chief analyst of PSB Bogdan Zvarich says that “the pressure on our shares rendered the situation on the energy market, where the nearest futures for oil of mark Brent has lost around 6%, having receded in the area of 33.6 dollars per barrel”.
Overall, concludes the expert on the stock market “BCS” Dmitry Babin, “preservation of panic in the world markets contributes to the acceleration of the spread of coronavirus as well as emergency, government measures in many countries aimed at combating this problem.” “This demonstrates the seriousness of this situation and of the uncertainty of its consequences, including economic ones, that scares investors,” adds the analyst.
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