• Direct Coronavirus, latest news
  • EU. The 27 agree on a recovery fund, but do not define the size or its financing

European leaders agreed yesterday to create a regional recovery fund to deal with the economic consequences of the coronavirus and will be tied to the budget of the European Union. It is practically the only thing that is known about him; neither with how much money will it be endowed nor how it will be distributed and that imprecision, fruit of the lack of agreement between the countries, is behind the falls in the stock markets of the Old Continent .

Just two months after the start of the Covid-19 stock debacle, investors continue to show that they do not trust countries' measures to reduce the economic impact of the pandemic. So this Friday they accelerate their sales again. The Ibex 35 fell more than 2% shortly after the opening, with IAG, MásMóvil and BBVA as the most punished stocks.

In the rest of European squares, the Cac 40 in Paris lost 1.3%; the Frankfurt Dax, 1.75%; the Ftse Mib in Milan, 1.25% and the Ftse 100 in London, 1.33%

The volatility returns to do of his, this time protected in the differences manifested in the European Council on Thursday. Although the countries agree on the need for a reconstruction fund, the states do not agree on how to finance it. Thus, Spain, Italy or Portugal propose that the aid be through non-reimbursable subsidies, while Germany or the Netherlands advocate loans that the partners have to repay.

That disagreement is also behind the slight rebound in peripheral risk premiums in these early hours of the morning. Investors also convey to sovereign debt their doubts about the impact that recovery plans will have on the public accounts of the most affected countries and seek refuge in the security of others such as Germany. On Wednesday, those doubts became very evident and triggered the indicators of countries such as Spain, one of the most affected in Europe by the Covid-19, and this Friday they re-emerged, so that the Spanish indicator exceeds 151 integers. The 10-year bond yields a return of 1.05%, compared to -0.46% of the German bund that is taken as a reference. The Italian risk premium rises almost 20 points, to 255 and that of Greece exceeds 281.

In the oil market, the situation has been normalizing throughout the week. Monday began with the historical drop in the barrel of West Texas Intermediate (WTI), the benchmark in the US, to negative terrain (-38 dollars) due to lower demand and storage problems at US facilities. Once the shock is settled , the WTI barrel for June delivery has recovered ground and brushes the 17 greenbacks this morning, while the benchmark Brent barrel in Europe exceeds $ 21.6 in the session

According to the criteria of The Trust Project

Know more

  • Coronavirus
  • Covid 19

MacroeconomicsEuropean stock markets expand their comeback and the Ibex remains on the verge of recovering the 7,000

MarketsEuropean stock markets slow down after the Eurogroup fails to respond to the coronavirus

CoronavirusThe Spanish risk premium scales to 2016 levels in the face of recovery doubts after the coronavirus