The Ibex closes a black week, falls 20.8% in the last five sessions

The Ibex closed with a rise of 3.73% after having shot up 10% this Friday (7,001 points) after registering yesterday the biggest drop in its history (-14%) and after Wall Street lost 9% and lived its worst day since 1987. The Spanish selective has begun to deflate after learning that Pedro Sánchez has declared a state of alarm.

The rises this morning came after the CNMV announced last night the decision to ban short positions to stop the bleeding and avoid a 'Black Friday' and its measure is taking effect. In any case, the situation of global chaos due to the coronavirus does not stop and fear and volatility dominate the market. In Europe, the exchanges showed in the last session, at least, that they do not trust Christine Lagarde, while 62 countries have already placed restrictions on entry to Spaniards while cases continue to increase here. In fact, more and more politicians are infected.

Investors expected and wanted a rate cut by the ECB after the Federal Reserve (Fed) and the Bank of England, as well as other central banks, have carried it out in recent days. However, the European Central Bank decided that it was not the way and it was not pleasing. Analysts, despite everything, applaud that this option was not chosen and instead 120bn more QE and additional financing has been approved. They call it a "smart move" because it "hits the right keys" in the face of this crisis.

On Wall Street, optimism also reigns and at the close of the European market it is rebounding 5%. This after the negotiation was suspended for 15 minutes yesterday before the debacle suffered by the stock markets. Donald Trump's speech yesterday, with a battery of anti-coronavirus measures that caused the opposite effect and made everyone nervous, led to the indexes falling apart and suffering their biggest crash since the October 1987 crash. The Fed announced emergency liquidity injections in the financial system, but even that failed to temper things.

All in all, the Ibex is hysterical. At the moment, with the help of the CNMV, it is shooting up, but we will have to see how long this euphoria lasts. The selective loses 25% in the year and around 30% from the February highs.

All this, after a week that will be long remembered, a week in which the barrage of measures finally led the population to become aware of the severity of the coronavirus, in which the oil price war added widespread chaos, and in which an action by the ECB that was not liked or was not understood caused the biggest crash in history on the Spanish stock market.

As for macro, this Friday the CPI of Germany (+ 0.4% monthly) and of Spain (down four tenths of a blow in February) have been published. In addition, the preliminary reading of the University of Michigan Consumer Sentiment Index will be released.