Banks, Colonial and IAG push the Ibex into the red, which falls 0.64% this Monday

The Ibex fell 0.64% this Monday after having fallen more than 2% during the day while the falls in the European stock markets have closed with increases. The Spanish selective has been pressured by sharp falls in banks (Santander has lost the March lows and Sabadell is at historical lows) or those of IAG and Colonial, which have fallen 3.13% and 3.16% respectively.

Repsol has also fallen (-0.67%), the oil company falls as global prices crash on Monday. West Texas crude sinks below $14 a barrel (-28%) for, among other reasons, the imminent maturity of the future in May, analysts explain.

The Spanish side has announced that it expects GDP to fall to 13.6% if confinement is extended. Spain, and also Italy, are the two European countries that will suffer the most economically from the pandemic, the analyst foresees a particularly severe recession for them.

In the last 24 hours, there have been less than 400 deaths from coronaviruses in our country, which represents a decrease. Still, the total death toll stands at 20,852. It is a constant that the most 'positive' news mixes with the negative in this whole crisis. Last week, Germany confirmed that it will allow certain businesses to reopen starting today. Not all countries relax the restrictions, as France and the United Kingdom have extended their closings until next month. Over the weekend, Spain also announced plans to extend the closure, but restrictions to allow children to go outside will be relaxed.

Meanwhile, the President of the United States, Donald Trump, has said this weekend that he wants to go to China to investigate how the coronavirus outbreak arose and has assured that they hold constant talks with the Asian country, despite the fact that their requests have been repeatedly rejected. "We are talking to China. We talked to them a long time ago about going. We want to go," President Trump insisted during this Sunday's press conference at the White House.

Red numbers have also hit Wall Street. At this time on Monday it yields 1.5% after the historic collapse of West Texas, the benchmark oil in the United States. "The movements we are seeing in the oil market are simply incredible," analysts at Bleakley Advisory Group acknowledge.

In Asia, on Monday it is news that the People's Bank of China (PCB) has cut by twenty and ten basis points, respectively, the reference rates applied to bank loans at one and five years, which will move to 3, 85% for twelve-month loans and 4.65% for longer-term loans.

This week business results will continue to be published worldwide and the season begins. Throughout the next five sessions we will know the accounts of Enagás, Grifols or Bankinter. Investors will be very aware of the impact of the coronavirus in all these figures. Over the past week, US banks have released their results and have shown, with sharp drops in profits, the extent to which the disease will harm companies' finances.

TECHNICAL ANALYSIS

"The candle we left this Monday is similar to that of last Thursday. We have touched the lows of last week and there the correction has been slowed, after partially filling the bullish gap that we have at 6,580 points. This is the most immediate support of our selective ", explains the technical analyst of Bolsamania, José María Rodríguez.

"As long as it is not closed, or what is the same is canceled, everything will remain the same. Let's say we are deploying a narrow side that may be the previous consolidation before trying to reach higher levels in the rebound," he added.

"Rebound that cannot yet be considered exhausted despite the clear loss of 'momentum' (cruising speed) in the market. Thus, the resistance to watch is at 7,210 and above 7,450 points (38.2% adjustment) and 8,000 (50% recoil) ", the expert ends.