Market sentiment, by María Briongos

The coronavirus returned to mark the Wednesday's session. The sales lost force and the stock exchanges closed with slight falls or even light rises, for example in the Ibex (+0.71%). The advance of the coronavirus has taken to Microsoft to announce, as it already made Apple, reduction in the expectations of profits. The company said that it will not reach its income objective of the third quarter out of $10.75 and $11.15 billion owing to the fact that the supply chain in China is working a slower pace from the expected thing.

The Bank of Korea (BoK) this early morning has maintained types and it has trimmed in two tenth its growth forecast from 2.3 at 2.1% for this 2020.

The U.S.chairman, Donald Trump said yesterday in a press conference that the deputy chairman Mike Pence will take the control of the reply to the coronavirus, and it ensured to the U.S., in order to relieve the public concern, that they face little risk.

Deserves the penalty point out Paul Chan's words, Minister of Finances of Hong Kong, that it has announced a programme through that which 10,000 dollars will be delivered people of Hong-Kong (about 1,180 euros) to each one of its approximately 7 million people over 18 years old as measured residents of stimulus in the economy. The above-mentioned this, the process of application did not begin until the summer, delaying thus payments of the cash during months. Although similar reactions are not expected in other countries, in Germany, the minister of Finances, Olaf Scholz would be considering adopt a temporary measure to jump the constitutional mechanism of limiting the deficit and the debt, allowing increasing the expenditure to the local authorities. The initiative would modify the rule “Schwaze null” that governs the Constitución so that the budget does not incur in deficit nor it soars the debt and he owe be approved in the Parliament where it will find a strong opposition in the CDU and the SPD.

Today's meeting will be marked for the publication of a battery of details macro among which we emphasise the economic feeling in the Euro area, the CPI in Spain and the initial unemployment requests and the second estimate of the GDP in the United States. Boris Johnson will present its government's red” “lines in the negotiation on the Brexit before the programmed sales talks for next week.

Yesterday's market

FR

The confidence of consumers was 104 points in February (103 expected).

US

The sales of new housing increased 7.9% to an adjusted annual rate seasonally. 764.000 units last month, the highest level from July 2007.

Foreign exchange market comment

Juan Carlos Peñalta

Continues the panic between the investors for fourth consecutive day with dyed Asian stock exchanges of red and the American losing yesterday all gains of the session. S&P falls in the year to 3.5% situating before the significant support of the 3000/3050.

The expansion of the virus out of China is found rampant, increase the cases for France, Italy, Germany, Denmark, Spain… arriving already to the United States with the first case of a patient that it has not been in the areas at risk.

The prevailing uncertainty and the worldwide paralysis with cancellations of flights, international fairs or of factories in the worldwide main producer, China, predict a smaller growth of the world GDP increasing the risk of recession of prolonging a lot in the time. Microsoft is today that which alert of not arriving at its sales forecasts for the halt in the chain of existing supplies.

The question now is how much will take the monetary authorities in applying expansive new measures that, is more than probable, are done necessary and above all if the measures that are adopted will have results or if these policies' effectiveness is found already sold out.

Europe:

SP 9.00 CPI.

TEMPORARY DISABILITY 10.00am Confidence of the consumers.

EU 10.00am Confidence of the consumers; 10.00am economic feeling.

US:

2.30pm Durables.

2.30pm GDP.

2.30pm Demands of unemployment.

Market summary