The Ibex 35 has suffered the biggest fall since Brexit, after collapsing 7.96% in another “black Monday” dragged by the coronavirus and the sharp falls in the oil market, which has led the selective to stand at 7,708 , 7 integers. During the weekend, the number of people infected in Italy and the US increased, which led the Italian government to take extreme measures to curb contagion. The fear of investors is that more and more countries take these measures, and paralyze economic activity, to the point that it can cause a global recession.
On the other hand, the price of a barrel of Brent crude, of reference for Europe, fell to 10%, to quote slightly above $ 36. Throughout the day, Brent has fallen more than 30%, standing at lows since the end of 2016, after Saudi Arabia responded to Russia’s refusal to join OPEC’s production cut with the announcement of an increase in oil pumping and a reduction in crude oil prices marketed by Aramco. As of April 1, OPEC members and their partners will be able to extract oil without limitations, and investors fear a price war. For many countries and oil companies it is not profitable to produce at these levels, so they will suffer serious difficulties. On its side, the barrel of Texas crude oil, reference for the United States, has finally been placed around 33 euros, with a decrease of 8%.
The values related to raw materials were the most penalized, Arcelor and Repsol were left more than 10% before the foreseeable reduction in demand and the fall in prices. The bank aggravated the falls before the slowdown of economic activity, and the possible announcement of new stimulus measures. All values closed in negative, and the Ibex already loses about 20% so far this year.
Panic and nervousness have taken over European markets and exchanges, which have also experienced steep declines, 7.25% in London, 8.39% in Paris, 7.94% in Frankfurt and 11.17% in Milan.
Investors will be attentive this week to the meeting of the European Central Bank (ECB) and its decision on interest rates to deal with the coronavirus, after the surprise decision of the Federal Reserve (Fed) of the United States to lower half a point Interest rates The Spanish risk premium remained at 92 basis points, with the interest required to the ten-year bond at 0.26%, while the price of the euro against the dollar stood at 1.1469 ‘green notes’.