Wall Street reacts 7% to the upside and pushes Argentine ADRs


The Dow Jones comes from losing a 37% accumulated since February 12. (Reuters) (LUCAS JACKSON /)

The shares rise this Tuesday and recovered some losses as market participants waited in the USA new fiscal stimulus measures by policymakers to combat the economic consequences of the pandemic of coronavirus.

The contracts of S&P 500, Nasdaq 100 and Dow Jones Industrial Average match hikes around 7 percent.

On New York stock exchanges, the Dow Jones advanced 1,460 points specifically, to regain the threshold of 20,000 integers and especially supported by large listed companies such as Boeing (15.1%) and Chevron (15%). The selective S&P 500 rose 6.9% to 2,392 points and the Nasdaq composite market index, which brings together major technology companies, rose 6.2% to 7279 whole.

Wall Street anticipates an early deal between Democrats and Republicans on the economic stimulus package for workers and businesses

A very favorable wheel is also anticipated for Argentine stocks, which are traded on the New York Stock Exchange as an ADR certificate. American Depositary Receipt). YPF jumps 12.7% to USD 3.83, underpinned by recovery in the price of oil raw.

Oil came to exceed USD 24 in the morning for the Texas barrel, with a gain of 4 percent – now up 2% – given the expectations of a consumption recovery of hydrocarbons, at a time when investors are waiting for the completion of the legislative agreement in Washington which will mean stimulus package to the US economy valued at about $ 2 trillion and that it will be used to mitigate the effects of the COVID-19 crisis.

The US GDP “will sink 12%” in a “brutal” second quarter, the biggest drop since World War II, with a “depression in April”, according to analysts at Bank of America Securities. “We think that the economy of USA is already in recession, together with the rest of the world, and it is a deep fall ”, they warn.

Source: Rava Online. Prices in dollars. (Updated 12:30)
Source: Rava Online. Prices in dollars. (Updated 12:30)

According to its forecasts, the North American economy would suffer a 12% contraction between April and June, after having registered an expansion of 0.5% in the first quarter. However, they clarify that “although the fall is severe, we think it will be quite short” In fact, they expect the economy to return to growth in the third quarter, while for the whole year, they forecast a contraction of 0.8 percent.

At the moment, the Federal Reserve The US (Fed) launched the greater stimuli economic history, after cutting its rates by 150 basis points in two emergency movements and activating a new program Quantitative Easing (quantitative easing or monetary easing) to buy $ 700 billion in bonds and mortgage assets.

The markets for currencies, stocks, bonds and grains of Argentina will remain closed until Wednesday, for the national holiday of Remembrance Day.

However, on Friday, a preventive and compulsory social isolation began for 12 days in Argentina, in an attempt to combat the outbreak of coronavirus that is in suspense to the world. The activity in each area, with the limits established by the mandatory quarantine, will resume on Wednesday at its usual times.

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