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The main European stock markets collapsed around 3.5% on Friday and oil fell more than 7%, due to the growing concern about the consequences of the coronavirus on the world economy.
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The Wall Street stock exchange also had a negative opening and at the time they remained with setbacks around 2%.
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President Donald Trump launched that forecast by highlighting the creation of 273,000 new jobs, according to official figures published today by his administration’s Department of Labor, which lowered the rate to 3.5 percent.
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Trump He also urged the Federal Reserve to lower its rates again and was confident that stock markets “will pick up” at a time of uncertainty over the outbreak.
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“The Fed should cut and launch more stimulus”He said after this week the US issuer cut its reference interest rates by 0.5 basis points due to uncertainty about the new coronavirus.
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Falls in Asia, Europe and oil
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At closing, the Frankfurt stock market fell 3.37%, London 3.62%, Paris 4.14%, Madrid 3.70% and Milan 3.5%. In Asia, Tokyo has fallen 2.72%; Hong Kong, 2.32%; and Seoul, 2.16%.
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On its side, oil prices fell between 7 and 8% on Friday, bringing Brent to its lowest level since July 2017, while some media reported Russia’s reluctance to shut down the crude oil tap in OPEC + .
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The barrel of Brent for delivery in May was worth $ 46.10, registering a fall of 7.78% compared to the day before. In New York, the WTI for April was down 8.19% to $ 42.12.
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In Vienna, the differences between Saudi Arabia and Russia have delayed the planned meeting between OPEC and other big producing countries.
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According to Sergio Ávila, of IG Spain, investors fear that the economic impact derived from the expansion of the coronavirus is greater than initially calculated and that it affects not only Asia but also Europe and the US.
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Along the same lines, Renta4 believes that risk aversion has intensified in the markets due to fear of a break in the economy and business results.
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Frank Häusler, from Vontobel AM, expects a significant decline in the growth rate of the world economy, but expects a recovery in summer.
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Bank of America insists that monetary and fiscal policies will not prevent supply problems caused by the disruption of global supply chains, but it needs to minimize the effects of the epidemic on demand.
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The outflow of equity funds is perceived in the evolution of refuge assets such as US and German bonds, gold or yen, the Japanese currency.
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The profitability of US and German 10-year bonds is at record lows, and gold is nearing seven-year highs.
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