Optimism is spreading among investors after the announcement that the drug Remdesivir against the Gilead coronavirus has reached the first objective, which is in addition to the plans for unconfining the different countries of the Old Continent. The European Stock Exchanges have closed their third consecutive session of gains with gains above 2%. The Ibex has closed above 7,000 points, in three-week highs, after adding 3.21% in a day full of business results. The Spanish selective accumulates a rise of 6.7% in the last three sessions.
Another day of euphoria in the European Stock Exchanges. Investors started the session taking a breather to consolidate the latest gains. The focus was on the de-escalation plans of the different countries that will allow the progressive return to economic activity. The lack of confidence shared the limelight with business results, the price of oil and meetings of the central banks.
However, mid-session it has been known American Gilead’s announcement that its drug Remdesivir had met its first objective in the treatment with coronavirus patients. From there, purchases have intensified and indices have skyrocketed.
Unlike the recent sessions, in which the Ibex has lagged behind, the Spanish selective stands out today among the main indexes of the Old Continent. The Ibex, in its progress, has reached over 7,000 points in its intraday highs, a level that has resisted closing for more than two weeks.
Banks are once again one of the engines of the selective. Yes yesterday Santander published resultsToday was the turn of Bankia, than made 94 million in the first quarter, 54% less after providing 125 million for the pandemic. Their titles rose 3.1% and those of Santander, 4.4%. Purchases are also imposed on entities that present results tomorrow: CaixaBank (+ 6%), BBVA (+ 5.7%) and Sabadell (+ 3%).
Naturgy and Iberdrola have also presented their accounts in the results chapter. Naturgy has seen fall its 19.1% benefit due to the world coronavirus crisis, while Iberdrola has achieved an ordinary net profit of 968 million euros until March, 5.3% more than in the same period of 2019 thanks to record investments of almost 10,000 million since the beginning of 2019. The accounts are collected with increases of 1.8% in the case of Iberdrola and cuts of 0.8% for Naturgy. Investors also quote the results of Red Eléctrica (+ 1.9%) and Cie Automotive (+ 8.8%).
The rebound of oil allows Repsol (+ 5.4%) stand out among the most bullish values of the session. Negative are some of the defensive values or those that have behaved the best in the year, such as Cellnex (-2 and Grifols (-one%).
The European Stock Exchanges, which in the first part of the session moved in narrow ranges, chained their third day of progress. The German Dax exceeds 11,000 points, thanks to the push from Deutsche Bank and the car companies, and the FTSE 100, 6,000.
In the debt market, the yield on the Spanish 10-year bond falls to 0.78%, with the risk premium slightly below 130 basis points. Yesterday, the Fitch agency cut a step Italy’s rating, up to BBB-, leaving it just one notch above the so-called junk bond. The Italian risk premium exceeds 220 basis points.
Volatility continues at very high levels in the price of oil, which experiences sharp ups and downs. Today the futures of the West Texas crude oil 30% after data on oil reserves in the United States lower than expected, to exceed $ 15 per barrel. The barrel of Brent, a benchmark in Europe, rebounds above $ 24.
Awaiting the outcome of the Fed meeting today, in which no news is expected, and the ECB tomorrow, the euro strengthens above $ 1.08 and the pound, is exchanged for $ 1.24.