The Ibex collapses 3.55% and loses 9,000 points due to the coronavirus outbreak
For the first time more cases have been reported outside of China than within the Asian giant
The European stock markets have yielded more than 3% this Thursday (Ibex: -3.55%. 8.95 points; Cac: -3.6%; Dax: -3.5%) while the coronavirus spreads throughout the world (already it is present in 30 countries). For the first time, the number of new cases of the virus reported outside China has exceeded the ones within the country, according to the World Health Organization (WHO), reflecting the speed with which the disease is spreading globally. In the US, Donald Trump has assigned the coordination of this crisis to Vice President Mike Pence. Trump has also insisted that the risk of coronavirus in the US is "very low."
IBEX 35
11.656,600
-
0,39%44,90
- Max: 11.674,00
- Min: 11.520,90
- Volume: -
- MM 200 : 11.116,96
"With more new cases reported outside China than inside, the center of gravity of the coronavirus has shifted to Europe and the rest of the world," explains Michael Hewson, director of analysis at CMC Markets, adding that this has generated great concern on the global economic repercussions.
German Health Minister Jens Spahn has said his country is at the beginning of a coronavirus epidemic after new cases have emerged. In Australia, the prime minister has indicated that we are probably facing a pandemic, while in Denmark the first case of virus infection has been confirmed.
The Ibex left this Wednesday a good technical figure after closing away from the minimum of the day. However, although the latter movement favors increases, the truth is that fear, uncertainty and volatility have been installed in the market and now we can expect days of sudden and unpredictable movements.
The falls are also being noticed on Wall Street. The New York Stock Exchange managed to close mixed yesterday however it has opened with falls above 3%. At the close of the European market it seems that it is turning around and reducing the fall after bouncing the S&P 500 from 3,000 points.
On the other hand, in Asia the red numbers dominated, with 2% drops for the Nikkei. "Wall Street chains its fifth consecutive day of falls, its worst losing streak since last August, although the positive side is that the Nasdaq managed to finish in green," Hewson said.
In the midst of all this, more companies communicate 'profit warnings' and changes in their plans due to the coronavirus. Microsoft announced a profit warning this Wednesday and Standard Chartered has done the same today.
This Thursday business results continue to be published, with a real flood of them in Spain. Notably, IAG publishes tomorrow and concerns are high as the entire airline sector is being greatly damaged by the coronavirus.
Outside, we highlight the figures of AB Inbev, also affected by the coronavirus. As for macro data, the CPI in Spain drops three tenths of a blow in February, to 0.8%. In addition, the economic confidence of the Euro Zone rises in February to its highest level since May. Today we will also know the GDP and PCE in the US.
