IBEX 35 Heads Decrease on Renewed Virus Fears as Omicron Variant Spreads Throughout EU

IBEX 35, Coronavirus, Omicron Variant, International Development – Speaking Factors

  • IBEX 35 rounds out worst month since March 2020 with a drop of 1.78%
  • Omicron variant has reignited fears of lockdowns, journey restrictions
  • The Spanish Benchmark sits at a key assist stage following Tuesday’s session

The IBEX 35 Index rounded out a dismal month on Tuesday by ending 1.78% decrease, as fears proceed to develop concerning the Omicron Covid variant. November’s decline is about to be the most important month-to-month decline since March 2020, when danger property throughout the globe bought off as Coronavirus unfold. November’s tumble of 8% nonetheless dwarfs the decline of over 22% in March 2020. Whereas vaccines have helped ease stress on danger property, the Spanish fairness benchmark has nonetheless underperformed its continental friends.

Whereas it’s nonetheless early days within the battle towards the Omicron variant, the potential for elevated transmissibility poses a extreme menace for the Spanish economic system. With circumstances already detected in Spain, it’s only a matter of time earlier than the variant spreads elsewhere. Omicron’s emergence comes at a time when market individuals have been busy navigating provide chain bottlenecks and rampant inflation. Omicron at this level could add to near-term uncertainty, which has been mirrored in value motion over the previous few periods.

IBEX 35 Index Every day Chart

IBEX 35 Heads Lower on Renewed Virus Fears as Omicron Variant Spreads Across EU

Chart created with TradingView

With the elemental assemble coming beneath stress with the emergence of the Omicron variant, the Ibex 35 has fallen to a key assist stage at 8,250. The index notably put in a backside at this stage throughout the July pullback. Ought to this stage maintain, market individuals could search for value to go looking out the large hole that was created throughout Friday’s leg decrease. A break of 8,250 might see a take a look at of the 0.618 Fibonacci retracement at 8,171, with clear air under that to eight,000.

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— Written by Brendan Fagan, Intern

To contact Brendan, use the feedback part under or @BrendanFaganFX on Twitter

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