The Ibex plummets 6% due to the coronavirus and awaiting the ECB



The Ibex 35 has started the session this Thursday with a fall of 5.71%, which has led the selective to stand at 7,011.70 integers at 9.01 am, on a day marked by the responses of the Governments, among They are from the United States and Italy, and from central banks to control the coronavirus.

In particular, investors will be attentive to the meeting of the European Central Bank (ECB) that will announce this Thursday what changes it will make in monetary policy with the aim of tackling the impact of the Covid-19 coronavirus on the economy of the euro zone. The markets’ attention is focused on the issuing institute after both the United States Federal Reserve and the Bank of England decided to meet in an extraordinary way and announced individual interest rate cuts by 50 basis points.

The Bank of Canada has also announced in recent days a similar reduction in the price of money, although in its case the ordinary monetary policy meeting was awaited. For his part, the President of the United States, Donald Trump, announced yesterday the suspension of the entry to the United States of foreign citizens who have been in any of the European countries belonging to the Schengen Area, as a measure of prevention and control of the new coronavirus . Trump’s decision, which will apply for the next 30 days, has already caused the price of a barrel of Brent crude, the benchmark for the Old Continent, to plummet 5%, to $ 33, while West Texas oil Intermediate (WTI), the benchmark for the United States, also fell 5% to $ 31.

In addition, in Italy, Prime Minister Giuseppe Conte has announced the closure of all shops except pharmacies and supermarkets as a new measure to contain the coronavirus outbreak. In this context, the Ibex 35 began the session anchored at the psychological level of 7,000 points, waiting for the Council of Ministers to approve on Thursday economic support measures against the coronavirus, which has already been declared a global pandemic by of the World Health Organization (WHO). In this nervous scenario, the European stock markets have opened the day, as has the Madrid stock exchange, with falls of 5% for Frankfurt and 4% for London, Paris and Milan, after closing the Nikkei index with a fall of 4 , 41%, the Shanghai Stock Exchange, 1.52%, and the Dow Jones, with declines of almost 6%. In the first bars of this Thursday’s session, the biggest drops in the Ibex 35 were for Amadeus (-6.5%), Melia Hotels International (-6.1%), ACS (-6%), Sabadell (- 6%), Bankia (-6%), Bankinter (-5.9%), Telefónica (-5.8%) and BBVA (-5.6%). Only MásMóvil was trading positive, up more than 13%. Likewise, the Spanish risk premium stood at 100 basis points, with the interest demanded on the ten-year bond at 0.2%, while the price of the euro against the dollar stood at 1,1306 verdes green notes ’.

More measures in Italy

In addition, in Italy, Prime Minister Giuseppe Conte has announced the closure of all shops except pharmacies and supermarkets as a new measure to contain the coronavirus outbreak. In this context, the Ibex 35 began the session anchored at the psychological level of 7,000 points, waiting for the Council of Ministers to approve today economic support measures against the coronavirus, which has already been declared a global pandemic by the World Health Organization (WHO). In this scenario of nervousness, the European stock exchanges have opened the day, like the Madrid stock exchange, with falls of 5% for Frankfurt and 4% for London, Paris and Milan, after closing the index Nikkei with a fall of 4.41%, the Shanghai Stock Exchange, 1.52%, and the Dow Jones, with declines of almost 6%.

In the early stages of today, the biggest drops in the Ibex 35 were for Amadeus (-6.5%), Melia Hotels International (-6.1%), ACS (-6%), Sabadell (-6%), Bankia (-6%), Bankinter (-5.9%), Telefónica (-5.8%) and BBVA (-5.6%). Only MásMóvil was trading positive, up more than 13%. Likewise, the Spanish risk premium stood at 100 basis points, with the interest demanded on the ten-year bond at 0.2%, while the price of the euro against the dollar stood at 1,1306 ‘green notes’.

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