Ibex: doubts persist due to the increase in virus infection rates

The UK will announce a possible relaxation of the two-meter distance rule later this week, in a bid to boost the hospitality industry, while an increase in localized coronavirus cases in Germany has raised concerns about a second wave of the virus in there

"Since Germany has been widely praised for its rapid response to the coronavirus, both from a fiscal and medical point of view, countries across Europe will now look nervously at what is happening there as the authorities of that country face this resurgence." explains Michael Hewson, chief analyst at CMC Markets in London.

In Spain, the state of alarm has come to an end and the entire territory has entered the 'new normality' this Sunday. Hewson points out that Spain will be one of those countries concerned about what is happening in Germany.

In Asia, Hong Kong's national security law, which was outlined by Chinese authorities on Saturday and is expected to become the law on September 6, is brought up again. China said the bill aims to protect its national security, while the United States, the European Union and the United Kingdom fear that it will be used to undermine the 'one country and two systems' framework that was agreed as part of the treaty. Hong Kong delivery to China in 1997.

All in all, from the technical point of view, the Ibex still cannot cover the bearish gap it left last June 11 at 7,663 points. "The Spanish selective is trading between two gaps, so we will be very aware of its behavior at two price levels in the coming days. Below, the key level we could place at 7,000 points. Analysts warn to take care regarding moving on from this level of demand as we could end up seeing a return to the level of 6,421 points, lows from last May. Above, the key resistance is at 7,663 points. To see a return to 8,000 points we should wait for exceed this level of supply, "says César Nuez, an expert in Bolsamanía and head of Trader Watch.