Such a movement has never developed in equity markets around the world. The fall is so vertical that it has taken all the sell orders and the coronavirus has unleashed panic among small and medium investors. In this sense, the losses have reached an average of 26% on the planet. Something not seen since the great economic crisis of 2008, but in this case with a fear of the unknown. Where the Ibex 35 has gone from 10.000 points to levels very close to 7.000 points in a space of time never seen in the history of the stock market.
This Tuesday the stock markets woke up with important rebounds in the stock markets of the old continent, around 3% or 4%, but in the middle of the session the change in trend came true to end the session with drops of just over 3%, as for example in the specific case of Spanish equities. This factor highlights the high volatility that financial markets have been infected with. Where any reaction is quickly answered by the massive sales by all investors and without exclusions. There is no truce that is worth it and the truth is that investors are losing a lot of money in the operations if they do not cut them on time, something that is already very complex.
While on the other hand, pessimism has settled in the minds of all financial agents because they see that this fact can leave a terrible mark on the global economy. To the point that it has caused the indices of almost all the world to go from an uptrend to a bearish one in a few days. Something that had not been seen in other historical periods, not even in the economic crisis of 2008. It is, in short, a journey into the unknown that can have lethal effects on the interests of small and medium-sized investors from now on.
The Ibex 35 almost at historical lows
One of the first effects that the coronavirus has generated is that the
Oil falls to record lows
After the failure of the summit of the OPEC and Russia And as a consequence of the coronavirus epidemic, the price of black gold plummeted by almost 30%, sinking the Asian, European and American stock markets. In this sense, and according to Bloomberg, the failure of the negotiations has caused a price war between Saudi Arabia and Russia, which may lead to the price of black gold falling to around $ 20 per barrel, as warned Goldman Sachs.
Of course, the collapse in oil prices also sent the Gulf stock markets reeling. The Saudi Arabian stock market, the most important in the region, lost 9,4%. The shares of the oil giant Saudi Aramco they fell 10 percent for the second day in a row. In the past two days, shares in Aramco, the world's largest listed company, lost $ 320.000 billion. It is true that panic has taken hold of the movements of small and medium investors and that it has caused that all equity indices around the world have left an average of 16% in the first days of the week.
Precedents in hiring
In February, BME reached a market share in Spanish securities trading of 69,06%. The average range for the month was 5,23 basis points in the first price level (12,5% better than the next trading venue) and 7,12 basis points with a depth of 25.000 euros in the order book ( 34,3% better), according to the available report. These figures for trading carried out in trading venues, both in the transparent order book (LIT), including auctions, and non-transparent trading (dark) made out of the book.
Moreover, the volume admitted to trading in fixed income amounted to 23.205,32 million euros in February. This figure represents an increase of 8,9% compared to the volume in the same month of the previous year. The outstanding balance stood at 1,56 trillion euros, representing an interannual increase of 0,9% and 0,7% in the accumulated of the year. The negotiation reached 24.823,5 million, which represents a growth of 3,7% compared to January.
The assets of mutual funds reached 280.000 million euros in February. However, the high turbulence present in the equity markets in the last days of the month will cause value adjustments in the fund portfolios. At the date of preparation of this report, the volume of assets of investment funds exceeded 280.000 million euros, thanks to the good performance of the market in the first part of the month and the positive dynamics maintained by the funds in terms of net flows , which reached almost 2.000 billion euros in February.
Investment fund operations
Once again, mixed fixed income funds led the month's equity increases, based on the significant volume of subscriptions they experienced, according to the latest ones provided by the Association of Collective Investment Institutions and Pension Funds (Inverco). In this way, mixed fixed income funds register a 6% growth in the first two months of the year. The entire increase corresponded for another month to the variant of international mixed fixed income (non-euro exposure).
Likewise, fixed income funds experienced significant growth (more than 900 million euros), the origin of which in this case is both the positive flows experienced and the positive profitability of their Funds. In any case, the funds in this category showed an asymmetric behavior depending on their duration, as long-term fixed-income funds grew by more than 1.300 million euros, compared to the decrease of almost 500 million in short-term funds.