Spain declares state of emergency due to soaring COVID-19 cases

The IBEX 35 started the week on a negative note and is trading lower around 6,880, in line with its European peers. Stocks fell after a record number of new infections was recorded over the weekend in many countries. On Saturday Spanish Health Ministry reported 20,986 new cases, which is the highest number since the pandemic began, followed by 19 851 on Sunday. Government imposed a new state of emergency and ordered a nationwide curfew in an effort to curb soaring coronavirus infections and prevent essential health services from collapsing. Curfew will remain in place for at least two weeks, and any further extension would need parliamentary approval, according to the constitution. “The more mobility, the more infections,” said Prime Minister Pedro Sanchez, who said he hoped to extend the state of emergency up to May 9, 2021.

SPA35 – last week index broke below the lower limit of the triangle formation, however sellers failed to uphold momentum and index pulled back. However as long as the price sits below it, further declines are probable. On the other hand, if buyers will manage to break above the upper limit of the pattern, then upward impulse towards support at 7195 pts could be launched. Source: xStation5

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