The Ibex does not recover the pulse despite the stimulus package of the central banks

The Spanish stock market suffered a further collapse in fear of a change in the cycle. Until now investors discounted a recession scenario, but if this situation continues, it could end in a depression.

Containment of the virus has become the main objective of governments, even if this means an unprecedented economic paralysis. Most government measures focus on responding to the health emergency. The Spanish selective registered a fall of 7.88% in the session on Monday, to 6,107.2 points, in a day in which it lost the height of 6,000 integers in the middle session, after the slight rebound experienced The last friday.

Central banks are also unable to stabilize markets. The Federal Reserve lowered interest rates to 0%, and announced a program to buy bonds worth 700 trillion, without having a positive effect. The greatest concern of investors is focused on knowing how long we will face this situation, and in what state the economy will leave.

IAG led the falls, and has already accumulated a loss since this crisis of over 60% began. In the event that this situation lasts until May, there are airlines that could go bankrupt.

Banking fell again above 10%, worsening economic prospects. In the negative field, the falls of Meliá (-18.51%), Aena (-15.03%), ACS (-14.34%), Bankia (-14.02%), BBVA (-13) also stood out. , 37%), Bankinter (-13.17%), Sabadell (-13.12%), Colonial (-12.34%), CaixaBank (-11.41%), Arcelormittal (-10.73%) and Santander (-10.61%).

Inditex announced the closure of more than 1,600 stores in Spain, and is expected to do so in more countries in Europe.

The main European squares also registered falls this Monday, although lower than those of the Ibex, standing at 4.71% in London, 5.92% in Paris, 5.33% in Frankfurt and 5.91% in Milan.

The price of oil registered further declines, reaching its worst reading in four years, given the continued advance of the Covid-19 coronavirus and the still ongoing oil price war between Saudi Arabia and Russia.

Thus, the price of a barrel of Brent quality oil, a benchmark for Europe, stood at $ 30.12, while the West Texas Intermediate (WTI), a benchmark in the United States, lost the level of $ 30, reaching at $ 29.32 at market close. The Spanish risk premium rose to 129 basis points, with the interest demanded on the ten-year bond at 0.836%, while the price of the euro against the dollar fell to 1.1141 ‘green notes’.


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