February, the stock markets closed with the worst fall since the 2008 crisis
In 2008 it was the last time that a financial panic was recorded for more than seven days in a row, when the stock exchanges showed numbers in red because of the real estate bubble in the United States, after the spread of Covid-19 in much of the world, Stock indexes recorded these falls again, a situation that not only led to the stock losing up to US $ 6 billion in the week, but also closing February in negative figures.
The highest drop was that of the Dow Jones, which lost more than 1,000 points for the third time this week in intraday operations. That led to a reduction with peaks of up to 3.1. The S&P 500 index decreased by almost 3. In that same line, the Nasdaq, of a purely technological component, yielded more than 160 points, to a downturn of 1.9.
And it is that fears of the spread of the virus, which already left more than 2,700 dead, prompted that only the S&P 500 lost US $ 3 billion of the combined market value, among the firms that compose it.
“It was a very strong week. The worst fall since 2008. 12 years ago it didn't look like a bad week. Pessimism is very strong because China is a world trade engine, and the issue has stopped many important businesses. Airlines, for example, have fallen a lot. It has stopped demanding goods and services, so companies in these sectors have been falling in an important way, ”said Andrés Moreno, stock market expert.
Dow Jones' negative reports were mainly driven by the decline in the actions of airlines and mass consumption companies. At the end of the day, Boeing, for example, closed with a fall of 5.5, one of the strongest.
According to Carlos Rodríguez, manager of equity in Ultraserfinco, “the airlines are the ones that have been most affected, especially the Asian ones, because they have suffered a lot from the decrease in traffic. Related to Boeing and Airbus obviously the affectation is important ”.
Rodríguez stressed that oil multinationals are also being hit hard by the price of oil and the fall in prices. However, he added that "the situation is a correction of 2019, and a widespread panic about the virus."
The fall that occurred in the United States and Latin America, with the index of Brazil, Argentina and Peru down, was also seen in Europe. At the close of the market, the Euro Stoxx 50 fell almost 4, the CAC 40, from Paris, by -3.3, while the DAX, from Germany, registered a contraction of 3.8. All indexes in negative because of the impact of the virus, and the new cases that occurred in some countries.
In Asia, Japan's Nikkei presented a negative market close of 3.67. Tokyo actions fell due to the increase in cases of the epidemic and the fear that the Tokyo Olympics would be canceled. With these numbers in red, the index lost more than 2,200 points this week, the biggest weekly decline since October 2008 when the global financial crisis occurred.
“The disease will not lead us to a lasting financial crisis. It could lead to a technical recession, but the real concern is whether it will make the American consumer cut its spending, ”Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York, told Reuters.
The Argentine and Brazilian market were the most impacted by the panic of the epidemic. While the S&P Merval of Buenos Aires fell 3.31, to 34,216.73 units, the Bovespa of Brazil registered a negative of -2.4, with -13.0835 units.
It is noteworthy that experts project that as the virus continues to spread throughout much of the continent, the situation of the main exchanges in the region could become increasingly acute.