The advance announcement of the elections has given a turn in the Ibex 35. The selective started the session with gains of 0.80% after the debt ceiling agreement in the US. The rebound has been deflating as the day progressed and it has definitively entered negative territory after the appearance of President Pedro Sánchez. The first reaction of investors has left a drop close to one tenth.
Spain will go to the polls on July 23. The news has caught with the changed foot the investors, who did not discount the announcement. In a gradual turn to red, among the negative values was the bank almost in full. CaixaBank, Santander, BBVA and Sabadell traded with losses that exceeded 1% in the financial sector. With the fall, the selective has lost the level of 9,200 points.
President Pedro Sánchez, in Congress
The elections add a new factor of uncertainty in the Spanish stock market for the coming months. “The factor that complicates the next general elections is the fragmentation of the political center,” says Bloomberg, which will lead to tending alliances with extreme positions to achieve majorities.
At present, the main front of concern was high inflation and the transfer of the rise in interest rates to the economy, something that has already caused falls in consumption and led to recession in Germany, the European locomotive.
At mid-session, the biggest falls in the Ibex 35 were for Meliá, with a decrease of 1.30%, Santander and BBVA, with -1.15%. The positive values were the majority, but the great part with moderate increases, less than a point. Only Grifols (+1.8%) and Acciona (+1.3%) stood out above this level.
read also
The results of the municipal elections, with an advance of the PP at the national level and snatching key autonomies from the PSOE, have changed the political landscape in Spain overnight. The Council of Ministers approves this Monday the dissolution of the Cortes and the electoral call. “Although yesterday’s votes had a municipal and regional scope, the meaning of the vote conveys a message that goes further,” Sánchez admitted.
The day is a public holiday in the US and UK, which leaves lower trading volumes overall.
read also
