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The Ibex suffers the biggest drop in history ahead of Brexit and Lehman Brothers


The Ibex closed this afternoon the worst session in its history, it has plummeted 14.06% to 6,390 points. Not that it was greater than the 9.14% drop after the bankruptcy of Lehman Brothers It has been greater than what was registered after the victory of Brexit on June 24, 2016. Then 12.35% was left.

Brexit, the already second worst fall, arguably was a major scare. In fact, in just four days he managed to break the bearish streak. On the 28th it managed to close with a 2.48% rise. By September 2, he had fully recovered.

The scenario after the Lehman Brothers bankruptcy was somewhat different from that of Brexit. The bankruptcy of the investment bank triggered a global crisis from which the markets took years to recover. The financial crisis led the Ibex to mark a minimum at 6,702 points in mid-March 2009. If one takes into account that in December 2007 it was trading in the 16,000 point area, the drop was 58%.

This time the situation is very different. The Ibex has been in sharp drops for several weeks, so much so that falls 37% from annual highs. The Spanish selective are noticing in their own meats the effect of the coronavirus, but it has been the ECB deciding not to lower interest rates who has delivered the final stab.

At this time the Spanish market is experiencing total uncertainty and cannot anticipate when it will end. Health experts assure that Covid-19 coronavirus cases will continue to skyrocket for at least two more weeks. As long as this lasts, fear will continue to be very present among society, which seems to go hand in hand with the red numbers of the markets.

Oil has not been a great ally for the Ibex either. The barrel of Brent, the benchmark oil in the European Union, is paid at $ 32, a price not seen since March 2004. While West Texas, the benchmark in the United States, is at $ 31. In this case you have to go back to 2003 to find such low data. This has catapulted Repsol's share price, which has closed with a 13.93% drop.

The coronavirus has not only caused a historic moment in the Ibex 35. In the United States, it is not experiencing a good moment either. The Dow Jones has plummeted nearly 30% from its all-time highThis has caused it to enter what is called the 'bear market' after liquidating the bull market that started just 11 years ago, in March 2009.

Something very similar is happening in the S&P 500 and the Nasdaq, which Accumulate a 27% drop from the highs of mid-February.

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