Spanish stock market records its largest drop in 14 months
The key Spanish Stock Market index – Ibex 35 – experienced its highest fall over the past 14 months following Catalonia’s sovereign challenge and consequent political instability.
The Ibex 35 fell up to 2% on the opening and stands one step away from losing 10,000 points for the first time since 15 March 2017.
Spanish banking groups Caixabank and Sabadell led the fall, dropping up to 5%.
The Spanish risk premium has rebounded to 136 points, scaling up some 20 points from the figure it registered on 1 October 2017 (at 115 points), and reaching its highest level since March 2017.
As reported earlier this week, the chief executive of deVere Group said that the troubles in Catalonia are set to have a knock-on effect on European equities.
The immediate market reaction to the illegal separatist referendum in Catalonia is likely to be muted – but what happens on the aftermath will be crucial, according to Nigel Green.