Volatility rules: the Ibex falls 3% despite yesterday's high

The Ibex falls more than 3% (6,290 points) after rebounding in the last session 6% supported by the announcement by Pedro Sánchez, who will mobilize 200,000 million to face the very serious economic problems that the coronavirus is causing. Volatility now dominates the markets and it is impossible to foresee what is going to happen, no matter how many more measures are being taken to combat the coronavirus.

Volatility has been present in Inditex, which has announced that it has provisioned 287 million for the coronavirus in its 2019 results and that it is deferring the dividend also for this reason.

The biggest increases have been for Aena and also for Telefónica after a Barclays report in which the British bank has defended the strength of the 'telecos' in the face of the coronavirus crisis.

In the negative, several values ​​have plummeted. Meliá Hotels sinks 18% after the closure of all its hotels in Spain. In addition, CIE Automotive falls 17% due to the closure of automobile factories in Europe.

Experts insist that what the markets are waiting for are fiscal measures by governments to alleviate this crisis that complement the multiple measures announced by central banks. The Fed continues to take action to combat this situation and on Tuesday the US Treasury Secretary Steven Mnuchin said that the Donald Trump administration wants to promote an economic stimulus plan valued at 1 trillion dollars to counter the negative impact of the coronavirus on economic activity.

"A broader picture is beginning to emerge of how governments are responding to the pandemic and that in itself offers some necessary hope. The authorities are trying to balance the restrictions with cheap loans for businesses and some relief for households," underlines Jasper Lawler, chief analyst at London Capital Group.

The fact that China said that they have successfully developed a coronavirus vaccine should also encourage the stock markets, but the fear persists and that volatility that we have mentioned above continues to control everything. China has stated that they have approved human trials, as reported by the Defense Ministry.

It should be remembered that, after all the measures it has announced in recent days, including the surprise rate cut to 0% -0.25%, the meeting of the Federal Reserve (Fed) scheduled for today has been canceled. In addition, this Wednesday we have known the CPI of the Euro Zone in February, which rose 0.2% monthly versus 0.2% expected and -1.0% previously. In annual rate, the increase is 1.2% compared to 1.2% expected.

IBEX 35 ANALYSIS

"The upward and downward movements of 5% in recent days fit within normal after a 42% slump from annual highs. This is how the market behaves when volatility, panic, is at its highest." explains José María Rodríguez, analyst at Bolsamanía.

"It is trying to build a market ground, at least in the short term, to try that 15% -20% rebound that should happen after the sales tsunami of the last three and a half weeks. But of course, everything must be subject to the lows of this Monday at 5,800 points. In other words, yes or yes this support must be respected. Otherwise we find the next stop at 5,250 points: the lows of 2002 ", concludes this expert.