The Ibex closes at the lows of the day as banking and tourist sector drag it down

The Ibex 35 has fallen 1.94 %%, to 6,631 points, and closed at the lows of the day dragged down by the banking sector (Sabadell (-7.89%), Santander (-4, 14%), BBVA (-4.55%)) and the tourism sector (Meliá Hotels (-7.77%), IAG (-4.84%)). Stocks related to commodities have also suffered, such as ArcelorMittal (-7.94%) and Acerinox (-5.87%).

Wall Street is also in the negative as investors remain concerned about a possible increase in coronavirus cases as countries launch their de-escalations. The tension between the US and China does not help either. Donald Trump has expressed through his Twitter account that not even 100 trade agreements compensate for the loss of innocent lives by "the Chinese plague".

Countries like China, South Korea or Germany have eased the blocking restrictions, which is considered progress, but at the same time have seen an increase in the rate of new Covid-19 cases. "The rate of new infections has not been huge, but it has been enough to raise some eyebrows. Governments have navigated through the pandemic so far, so they are likely to be able to cope with any resurgence along the way," explains David Madden, analyst at CMC Markets in London.

Antony Fauci, director of the United States National Institute of Allergy and Infectious Diseases, warned on Tuesday that "suffering and death" could be a consequence of a reopening of the economy too quickly. The S&P fell more than 2%, as did the Nasdaq, after six consecutive days of gains.

Nor have the statements of Jerome Powell, chairman of the Federal Reserve, who have assured us that we are facing "the worst recession since World War II," have gone unnoticed.

In the oil market, crude oil falls slightly - after OPEC has further deepened its global forecast for oil demand: from the 6.8% forecast a month ago to the current 9.1% reported in its latest report.

At the macro level, UK GDP for the first quarter has fallen by -2.0% compared to -2.5% expected and 0.00% previously. At the business level, medium-sized companies in Spain, such as Metrovacesa, have published results.

TECHNICAL ANALYSIS

"Again we have the Ibex asking for a break. And the reason is none other than the fact that again we have it at the gates of the support that it presents at 6,580 points. You just have to look at the daily chart to realize that the Ibex has had a flat encephalogram for a month and a half, "explains José María Rodríguez, technical analyst at Bolsamania.

"In this period we are witnessing a side that is gradually narrowing and from which the price should come out strongly in one way or another," says the expert.

"But either things change now or I'm afraid we will break lower. And I do not rule out a return to the March lows. Above, the most immediate resistance is already very far away: the last decreasing maximum at 7,128 points" , ends the expert.