The horizon is obscured Thursday for the markets, again down, frightened by the spread relentless of the novel coronavirus around the world and in particular in the United States, the first economy of the planet.
The red was making a comeback in Asia, where Tokyo in particular, after two sessions of gains as spectacular, has suddenly stalled, in the face of fears of a growing outbreak of the disease in the capitalae japanese.
The small thinning of the last two days in Europe has also been swept away.
Around 8: 45 p.m. (Montreal time), Paris lost 2,02 %, Frankfurt 2.67 per cent and London 2,67 %. Milan was down by 1.23 % and the Madrid of 2.15 %.
And the color looked the same in the United States. The futures contract on the index featured Dow Jones Industrial Average lost 0.50 per cent, that of the expanded index S&P 500 with 0.87% and the Nasdaq, to the strong staining technology, 0.51 per cent.
In spite of a containment that now covers more than three billion people, the balance sheet does not cease in fact to come up with at least 21 867 victims.
Just prior to the opening of spaces for the u.s., the boss of the Fed, however, has tried to reassure them once more, promising that his institution will continue to lend “aggressively” to combat the economic impact of the epidemic, but this has not reversed the trend.
Investors are concerned about “the spread almost uncontrolled of the virus in the United States and especially in New York, which is confined more and more,” said John Plassard, a specialist in the investment in Mirabaud.
“In the United States, we only have two weeks of decline, with different reactions from one State to the other : California and New York have taken measures for containment, but the Texas, for example, refuses to do so “, stressed to AFP Daniel Morris, a strategist senior at BNP Paribas Asset Management.
“The situation is therefore still difficult to assess “, but in view of the resulting falls, “the market table already in a severe recession,” adds he.
“The GDP of the United States is approximately 22 000 billion, or $ 1.800 billion per month. If the economic activity decline of 25 %, this represents approximately $ 500 billion per month, ” calculates the expert.
With the 2000 billion put on the table by the executive to us, this allows one to take four months and only two if the activity is reduced to half, ” he continued.
In this context, the oil market was evolving, also in the red at around 8: 10 a.m. (Montreal time), with a price per barrel of crude oil u.s. (WTI) in the removal of 3.80 % to 23,56 dollars, while a barrel of Brent of the North sea, lost 2.23 percent to 26.78 usd.
And the euro continued to appreciate against the dollar.
On the debt market, the movements were limited.
“The market has calmed down since the massive programs of the Fed and the ECB have been uncovered,” noted with the AFP Eric Vanraes, managing director bond of the swiss bank Eric Sturdza.
Explosion of unemployment in the United States
On Wednesday, the european indices had however managed to string together a second session of consecutive increase, thanks to a vote by the u.s. Senate on a plan of “history” of 2000 billion dollars.
The plan must still be approved by the House of representatives, controlled by democrats, Friday, before being promulgated by the american president.
In Germany, members of parliament, after years of fiscal discipline have also adopted a plan of rescue of “history” of almost 1100 billion euros.
While the G7, which brings together seven major economic powers struggled to show its unity against the Covid-19, between the United States accusing China of “misinformation” and Europeans insisting on the necessary co-operation with Beijing, the investors are waiting with anxiety the latest figures of applications for weekly unemployment benefits in the united states.
These have exploded due to the pandemic with more than three million additional people who have requested to receive it the last week, an historic record, according to the department of Labor.
After the collapse whereas in Germany the morale of German consumers in April, according to the barometer of GfK, and a heavy fall in the business climate in France, the markets ‘ fears were confirmed.