The S&P 500 and the Nasdaq 100 renew their highs accompanied by increases in gold, oil and the dollar

Wall street It bounces this Wednesday. The Dow Jones rises 0.40%, to 29,348.03 points, but stays a slight 0.7% away from renewing its previous highs. Those who have achieved it have been the S&P 500 and the Nasdaq 100. The Standard & Poor's rebounds 0.47% compared to Tuesday and reaches 3,386.10 integers. It is its 13th session in highs of the 33 that have elapsed since the beginning of the year (40% of the total). For its part, the Nasdaq 100 rises strongly 0.92% to stand at 9,718.73 units. The technology is less than 300 points out of 10,000 integers.

The Federal Reserve of the United States (Fed) was alert for the possible implications for the financial and economic stability of the country that could have the current moment of high corporate indebtedness and overvaluation of assets.

This follows from the minutes of the monetary policy meeting held by the agency at the end of January, when it decided to keep interest rates unchanged in an objective range of between 1.50% and 1.75%, at the same time that warned that he was monitoring the possible implications for the US economy of the outbreak of coronavirus that emerged in Wuhan (China).

Just one day earlier, on Tuesday, Wall Street suffered a moderate correction that caused the S&P 500 index to approach its “first short-term support” in the 3,350 points, says Joan Cabrero, director of Strategy for Ecotrader.

The Nasdaq 100 has its homologous level in the 9,500 integers. Both selective today distance themselves from these levels, and only in case of losing them at the close of a session, the expert anticipates, would it be the first sign of “buyer exhaustion”. The technological index still separates 2.2% of that support area.

Wall Street experiences a “free ascent”, that is, the most bullish technical situation that exists, which Cabrero calls even “indomitable”; and will not change its appearance as long as the Nasdaq 100, “the strongest index”, remains above the 9,200 units.

Oil rises for the seventh consecutive day

Oil futures Brent They reach the area of ​​59.1 dollars per barrel, after rebounding around 2.4% compared to Tuesday, which is their seventh day of increases. I had not enjoyed a similar bull run since early 2019. The reference crude in Europe does not close a session above 60 dollars since January 29. So far this year, oil Brent trim your losses up to 10.4%.

For its part, the futures of West texas They bounce 2.5% during the day, to reach the area of ​​$ 53.4 per barrel. So far this year, they lose about 13% of their value.

OPEC and its allies have confirmed that they will meet in Vienna the next March 5 and 6 as planned, thus ending the apparent inaction of the organism in the recent collapse of the price of crude. The coalition will have to decide if it deepens the production cuts that are already in force and if they extend them in time or end before summer.

The euro turns upwards from $ 1.07

The European currency rebounds near 0.1% with respect to Tuesday and reaches the zone of the $ 1.08 again; a turn that avoids at the moment a fall to the lows of 2016 that marked at $ 1.03. The common currency depreciates around 3.6% against the US banknote so far this year.

For its part, the pound sterling yields part of the rise that led to its annual maximum over 1.20 euros and falls to the area of ​​1,197. So far this year, earns 1.2% on the euro.

As for metals, gold records a new annual record in the area of ​​$ 1,605 per ounce. The metal rises for the fifth consecutive day and accumulates a 5.4% return in 2020. It did not reach a similar level since March 2013, although in 2012 it reached 1,794.1 points.

According to Citigroup, there are many compelling arguments for investors who see how “long-term assets, such as gold, have been benefited even with the stock market and upward credit“, writes Fernando S. Monreal in the Economist.

More stimuli in China

The purchases in the New York parquet have been preceded in the Asian and European squares. This generalized green in the stock exchanges is based on information that suggests that China will activate more economic stimuli to mitigate the effects of Covid-19 coronavirus.

The disease has already killed more than 2,000 people and more than 74,000 are infected. The Chinese government could lower its forecast of gross domestic product (GDP) for this year to 5.5% due to the impact of the epidemic, according to the Department of Income Analysis 4 in its daily report.

Last year it grew by 6.1%, and it already assumed its lowest rate since 1990. “The situation is serious,” Unigestion analysts warned yesterday in a market comment.

To mitigate the possible negative effects, as reported Bloomberg, the Executive of the Asian country is considering making more capital injections and carrying out mergers within its airline sector, especially damaged by the epidemic.

These would not be much less the first actions of the Chinese Government to 'plaque' the economic threat of the coronavirus. The most recent was two days ago, when the People's Bank of China (the country's popular bank) lowered interest rates in the medium term.

However, “it is too early to conclude that containment measures are effective,” as Gilles Moëc, chief economist at the AXA IM manager said today.

The highlights of the session

Investors are calmer this day. Proof of this is the rebound of giant Apple technology. The apple company suffered declines of about 2% yesterday after reporting precisely that it will not meet its first quarter revenue forecasts due to the impact of the coronavirus. However, today it revalued around 1.5%.

But if there is a value that stands out from the rest in the S&P 500 it is Nvidia. The manufacturer of graphics processors (GPU) rises a little more than 5% compared to the previous day, partly because of the optimism that has been shown by Bernstein analyst Stacy Rasgon.

Among the reasons that lead the expert to propose this scenario are the next product cycles, short-term catalysts and the resumption of hyperscale investment, as reported by Marketwatch. From Bernstein they have raised the recommendation to overbought and the target price of 300 to 360 dollars.

In addition, the company offered an image of stability by presenting its forecasts for the quarter ending in April on Wednesday. The US firm expects to enter close to 3,000 million dollars, above the figure of 2,850 million expected by the market consensus.

'The first skirmishes of the commercial war between the US and Europe “

“The rise in the import tariff to 15% on imported aircraft was an unequivocal signal that the US administration raised its stake in the dispute with the EU over Airbus“says Gilles Moëc, AXA Group Chief Economist, of AXA Investment Managers.

“Although it did not extend that rise to other products, the White House has made it clear that it reserves the right to move forward with this tariff policy if there are no concessions by the EU.” An example would be to withdraw the case of Boeing, “which has already caused a 10.7% decrease in the production of airplanes and parts in the US, impacting on manufacturing production total, which fell 0.1% in January, “recalls the expert.

In addition, Moëc indicates that “this situation will put the EU in a complex position due to the misalignment of some national interests with regard to trade policy.”

For readers who want more: Ecotrader, the investment strategy portal of elEconomista.es

Chinese companies capture more than 3,000 million in 'coronavirus bonds' since the beginning of the month