Ibex loses 9,300 points after the arrival of the coronavirus in Catalonia

While new cases of coronavirus have continued to decline in China, an increase in them in South Korea, as well as in Europe and the rest of the world, has agitated world markets. Fears of a pandemic and prolonged economic disruption have caused some of the biggest declines in years for some market sectors. It should be noted that, in Spain, a hotel in Tenerife is in quarantine after the Italian tourist has tested positive for the virus.

Sales in equities have led investors to bond markets, which has made the 30-year bond yield of the United States have had few records, while gold prices reach a new all-time high. against the pound sterling, and also reach its highest levels against the dollar since 2013.

Concern about the fall in demand also caused oil prices to sink sharply, as markets speculate with a prolonged economic slowdown would result in an excess supply. Crude oil remains flat on Tuesday after the last declines.

"There is no doubt that financial markets are realizing that this particular crisis is likely to have a slightly longer lifespan than many thought a couple of weeks ago. However, outbreaks are nothing new. They happen every year and, according to the World Health Organization, the flu kills up to 650,000 people a year, but the markets are reacting to an outbreak that so far has only affected a fraction of that figure, "says Michael Hewson , analysis director of CMC Markets in London.

"This is not to downplay the severity of the coronavirus outbreak, given how little we know about it, but I could argue that the reaction of governments to the outbreak, closing borders and restricting movement, is actually making things worse. , in addition to sowing confusion and fear among their populations, "adds Hewson.

However, the Ibex had that support of 9,357 points. When losing it, it would go for the 9,100 points. "This price level (the 9,100) is key to its technical evolution in the medium and long term. It is more than likely that the most immediate technical future of the Spanish index will be filled with clouds," explains César Nuez, analyst of Bolsamanía.

At the business level, Endesa has published 2019 results, with a 87.9% drop in its net profit due to a net loss of 1.4bn from its coal plants. As for the macro data of the day, Germany's GDP in the fourth quarter was 0.0% compared to + 0.1% before and expected.