December 11, 2017, 21:22

Spanish Stocks Slump Amid Investor Selloff After Catalonia Vote

Spanish Stocks Slump Amid Investor Selloff After Catalonia Vote

The dramatic events in Catalonia have had an impact on the financial market in Madrid as investors, fearing turmoil, sold Spanish stocks and government bonds.

On Friday afternoon, after the news broke of Catalonia’s declaration of independence, the value of the Ibex 35 index of Spain’s biggest companies dropped by 1.45% in comparison with the beginning of the day’s trading.

Spanish banks were the biggest losers. The Catalonia-based Banco de Sabadell was down 4.85% and CaixaBank was down 2.74%. The Banco Bilbao Vizcaya Argentaria was down 3.31%, according to data from Marketwatch.

The yield on Spanish government bonds rose as investors sold them, sending prices down. The yield on ten-year Spanish government bonds reached 1.58% on Friday, in comparison with 1.54% at start of trade.

The euro currency also decreased in value after the Catalan vote, trading down 0.6% at $1.16 to the dollar on Friday afternoon. 

After a turbulent week, the STOXX 600 index of European stocks was down 0.37% in comparison with the previous day’s trading, although large European markets such as the German DAX and the London Stock Exchang were up in comparison with Thursday.

Sourse: sputniknews.com

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