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Tension in Catalonia add to the stock market in a strong volatility

The Ibex closes this Friday with losses of 1.45% after a strong fall by the Declaration of Independence of Parlament

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Tension in Catalonia add to the stock market in a strong volatility

Despite strong uncertainty in which Spain has been installed, has not yet lived a real crash or a day of euphoria in Ibex 35. Analysts say that it is because investors still do not assume that Catalonia's independence can truly crystallize. With British support for Brexit, after a legal referendum, Ibex collapsed more than 12%. Since October 1, however, biggest drop in stock exchange has been 2.45%, on October 4, just before two large banks of Catalan origin, CaixaBank and Sabadell, changed its headquarters to Valencian Community. However, without big crashes, uncertainty in Catalonia has plunged Ibex into a swing of ups and downs and a continuous tension.

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  • The president of Sabadell says that transfer from Headquarters to Alicante "has no expiration"
  • The political crisis extends its economic impact to metropolitan area
  • Entrepreneurs call for an "immediate" call for elections in Catalonia

The last two days of this week have been maximum example of this tension due to contagion of political events. On Thursday day dawned in bag with a slight fall. And points of Ibex danced to are of appearances that government was summoning and disconvening. It was clear, yes, that Ibex wanted elections. Shortly before 12 am, when Fuentes de Junts PEL did indicate that president of Generalitat, Carles Puigdemont, opted to convene autonomous elections, investors saw an exit to Catalan crisis. And Ibex climbed almost a stroke over 2.5%. At five in afternoon, however, it became clear that everything had been a mirage: Puigdemont announced that re would be no elections. The joy dissipated a little in bag. But close closure and impulse of measures arrived from Frankfurt after European Central Bank meeting stopped coup. The ascent, yes, was deflated, to 1.9%.

This Friday mood began also with sales in parquet. Moderate descents first thing in morning. The Govern was gared at 10 in morning. At that time, it started Senate meeting, where a debate was expected and a vote to give permission to government to activate, if so decided, article 155 of Constitution. At 15.00, again a height in Catalonia: The vote is approached in Parlament. Opposition groups leave courtroom. The secessionist parties vote and approve independence of Catalan Republic. And Ibex accelerates its falls. 1.2% goes to 1.4%, 1.5% and 2%. The bank takes worst part: Banco Sabadell loses 6% and CaixaBank, about 4%. However, it was too late.

Shortly after 4 p.m., Senate approves to allow government to apply article 155 of Constitution. It may, thus, dismiss government of Generalitat. The President of government, Mariano Rajoy, is leaving to convene an extraordinary Council of Ministers. The opening scenario is not easy: application of that article will not be easy. But bag responds by lowering sales. In end, has closed with a drop of 1.45%. In two days, Ibex came to play 10,422 points and 10,136 points.

The Catalan Independence challenge

News, reports, opinion, analysis, photographs, live coverage ... all information about vote in favour of independence in Parlament and approval of article 155 in Senate to curb secessionism.


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