The Stock Exchanges have expanded yesterday’s escalation, encouraged by the hope of containment in the spread of the coronavirus and awaiting the result of the Eurogroup meeting. After the opening of Wall Street, the Ibex moderated the progress of the first part of the session to close at 7,002.20 points, with an increase of 2.30%.
New session of advances in the European Stock Exchanges, which have allowed the Ibex to close above the 7,000 point barrier for the first time since March 26, before the dizzying rate of spread of the coronavirus by the United States frustrated attempts market recovery.
Investors’ eyes are now on the Recovery after the stoppage caused by the coronavirus and the first key will be to know when the current restrictions will be lifted. The previous step will be the withdrawal of the pandemic, and the latest figures point to at least containment in Europe. To help get out of the crisis, the markets could count on new stimuli depending on the outcome of the meeting of the Eurogroup, in full debate on greater coordination in the form of ESM or Eurobonds.
On the Spanish stock market, investors are trying to see the light at the end of the tunnel, and in yesterday’s session they were clearly betting on cyclical stocks or those that were very affected by the current crisis. The recovery of companies more linked to the tourism sector sparks debate among investment firms about the prospects for Amadeus, which today has risen 10.58%. JPMorgan, HSBC and Evercore have updated their valuations today, with very different references, from 48 to 82 euros per share. The rises have regained strength in tourist values such as IAG, which has added 7.76%, in line with the rest of the European sector, and Melia, which has gone up 12.12%, and in industrials such as ArcelorMittal (+ 10.21%) and Acerinox (+ 5.19%). Oil increases have also favored Repsol (+ 3.35%).
After the strong advances of yesterday, the banks They have continued their comeback, although with different intensity. BBVA, which today has discounted dividend, has hinted 4.13%. Bankinter it has added 5.00%; Sabadell, 2.79%; CaixaBank, 1.90%; Bankia, 3.23% and Santander, 0.63%, up to 2.25 euros.
On the contrary, the more risk-tolerant profile of investors translates into a brake in a defensive sector such as that of utilities. RBC analysts today adjusted their perspectives on Enagas and Iberdrola. They have improved their recommendation on the gas infrastructure company, which has rebounded by 3.63%, and have lowered that of Iberdrola (-0.44%), while they have cut their potential to 10 euros per share. UBS, for its part, has improved its recommendation on Iberdrola to ‘buy’. Within the electricity sector they have also closed with cuts Naturgy (-0.78%) and Red Electrica (-0.35%.
Today the brake has reached to a greater extent two of the values of the Ibex that resist with better balance sheets so far this year. Grifols has lost 2.51% to accuse the reduction issued by Citigroup, which has withdrawn its recommendation to ‘buy’, while Cellnex, the best value of the Ibex in 2020, has lost 3.69%. Its president, in an interview with EXPANSION, acknowledges that “there will be a short-term brake on the deployment of towers due to the crisis.”
The rest of European bags it has also opted for profits. The German Dax has stood out in the gains, with a rise of 2.79% encouraged by the stronger than expected strength of its economy just before the stoppage by the coronavirus. In February, its industrial production avoided the contraction expected by analysts and grew 0.3%. On the London Stock Exchange, which has recorded a rebound of 2.19%, attention remains focused on the evolution of Boris Johnson due to the unusual nature of the situation: an active prime minister admitted to the UCI. The French CAc has added 2.12% and the Italian Mib, 2.19%. Without big macro data in the US, the biggest news could come from the meeting of the Eurogroup and its debate on new measures to coordinate the way out of the crisis.
Companies linked to the tourism sector have excelled in progress, with special mention for airlines, which take off on the stock market after becoming the biggest victims of the coronavirus crisis. EasyJet, after the ‘rescue’ of the British Government in the form of credit, has led the takeoff, with increases today of 15.1%. Norwegian Air Y Wizz air They have rebounded 11.3% and 14%, respectively. Previous punishments also help the comeback in values such as Cineworld. The British cinema operator, after being forced to close all its theaters, has rebounded almost 50%, despite confirming the suppression of the dividend. In the midst of the crisis, the upward revision of forecasts for Ambu, the hospital equipment and material company has added 8.7% to the Copenhagen Stock Exchange.
The recovery extends today to the market of Petroleum. Yesterday’s corrective gives way to further increases, with an eye towards the reduction in production that OPEC + will foreseeably approve on Thursday, although some analysts point out that it would be conditioned on the US joining this production cut. The barrel of Brent recovers $ 33, and the barrel type West Texas, the benchmark in the US, is trading at $ 26.
Waiting for news about the ESM or Eurobonds at the Eurogroup meeting, the interest of the Spanish bond it rises to 0.80%, while the risk premium stands at 112 basis points.
In the currency market, the dollar it accuses the minor search of refuge on the part of the investors. He euro is approaching $ 1.09, and the pound retrieves $ 1.23.