After the impasse on Thursday by the European Central Bank meeting, the Stock Exchanges have resumed this Friday on the upswing encouraged by the progressive reopening of the economies , the apparent containment of the virus in the most affected countries and the injections of stimuli that continue coming from the institutions.
Companies and governments are beginning to see a certain path to follow in order to recover their rhythm, and that optimism prevails over other less positive data, such as the largest collapse in the history of factory orders in Germany (-25.8% ) or the 33.6% drop in Spanish industrial production.
One of the main focuses of attention this Friday was on the unemployment rate in the United States , which has broken all expectations, falling unexpectedly to 13.3% in May , compared to 14.7% the previous month. This decline reflects an increase of 2,509 million in the number of people employed last month, when confinement measures and business closings began to curb the coronavirus pandemic.
The news, which came just before the opening of Wall Street, has given the definitive boost to the European stock markets and has allowed the Ibex 35 to sign its best week since the 2008 crisis. With a rise of 4.04% in the session The selective has ended with a weekly balance of 10.9%, which maintains it at the levels of March prior to the viral crisis (7,872 points). Much of the blame for that increase lies with IAG and the banking sector .
Recovery of IAG and banks
The airline conglomerate continues its recovery after the harsh punishment its actions have received for much of the quarantine due to travel restrictions imposed around the world. The holding company , which includes airlines such as Iberia, British Airways or Vueling , has advanced this Friday by 14.9 %%, to 3.67 euros per share, and boosts its weekly advance to 40%. Since their titles touched a minimum of eight years on May 14 at 1.80 euros, the price has doubled.
Below the company are banks, with Sabadell at the forefront. It also coincides that it is one of the values most punished during the pandemic and the value that loses the most of the entire Ibex so far this year (-63%). Added to its difficulties in the United Kingdom is now the high exposure it has on its balance sheet to small and medium-sized companies in Spain, precisely those most hit by the slowdown in the country's economy. However, the reopening seems to have injected oxygen among its investors and only this Friday it has risen 12%. In the last week, his recovery is around 30% and his shares are exchanged for 0.36 euros.
Santander (+ 11.3%), BBVA (+ 9.8%) and Bankinter (+ 7.96%) have followed in the footsteps of the Catalan entity and complete the list of securities with the highest increases in the Spanish selective.
Optimism also dominates in the rest of Europe . The Cac 40 in Paris and the Dax in Frankfurt have risen 3.7% and 3.36%, respectively; the Ftse 100 in London, 2.25% and the Ftse Mib in Milan, 2.82%.
"The problem now is that we ignore the underlying risks, such as the possibility of a second wave of infections," says Francisco Quintana , director of Investment Strategies at ING . Such a scenario could return stocks to dips in recent weeks. But for now the recovery is imposed and in this case, according to Quintana, it is being "spectacularly fast" compared to other previous crises.
Partly due to the dizzying comeback of companies and sectors that suffered greater punishments during the confinement and are now readjusting their value.
The IAG economist points to airlines and banks within that group, but also to values related to entertainment and leisure or to cyclical companies that were also heavily penalized by doubts about future activity. Other companies that could benefit from the stimulus programs that are being launched are those in the automobile sector or those that have an energy efficiency focus and, in general, "all those that will benefit from the tax packages that go directly to the consumers' pocket and measures to encourage consumption, such as VAT reductions, "concludes Quintana.
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