EUROPE MARKETS: Spanish Stocks Dragged Down By Catalonia Uncertainty, Sapping European Benchmark
16 Oktober 2017 - 10:31AM
Dow Jones News
By Carla Mozee, MarketWatch
DAX trades around record highs
Stocks listed in Spain dropped Monday, weighing on the
pan-European benchmark, as a statement from Catalonia's leader left
investors struggling to understand where the region stands on
independence.
In Madrid, the IBEX 35 fell 0.7% to 10,187.40, as only six
components moved higher. As the index extended its loss from the
open, the broader Stoxx Europe 600 pared its gain to 0.1%, at
391.94.
Catalonia's president, Carles Puigdemont, on Monday told the
Spanish government that his aim was for two months of talks to
discuss the northeastern region's break from Spain
(http://www.marketwatch.com/story/catalan-leader-dodges-clear-declaration-of-independence-2017-10-16),
local media reports said. But he did not clarify whether Catalan
leaders have formally declared independence after a regional
referendum this month backed a split. The national government had
given Puigdemont a deadline of Monday morning to make the situation
clear.
The lack of real response to Madrid's demand could bring
reprisals from the central government , which is seen as having
been heavy-handed in dealing with the situation so far.
"By declaring independence, [Piugdemont] is likely going to be
arrested, and Madrid would have to impose the Article 155 of the
Spanish constitution. Under this article, Madrid would directly
rule and it would also trigger mammoth unrest in the country," said
Naeem Aslam, chief market analyst at Think Markets UK.
"On the other hand, if he backs down, the Catalan government
isn't going to accept his leadership anymore and the government
would spilt," he added in a note.
"This entire situation opens the euro currency to a significant
risk and uncertainty," Aslam said.
The euro traded at $1.1795, down from $1.1821 late Friday in New
York.
Stock movers: Shares of lenders CaixaBank SA (CABK.MC) and
Bankia SA (BKIA.MC) traded near the bottom of the IBEX, declining
2% and 1.5%, respectively. Siemens Gamesa Renewable Energy SA
(SGRE.MC) skidded 6.7%
Topping the few advancers was Distribuidora Internacional de
Alimentacion SA (DIA.MC) as shares of the discount supermarket
chain rose 1.2%.
Other indexes: Germany's DAX 30 index rose 0.1% and traded
around record highs at 13,003.91. The German benchmark last week
marked a sixth consecutive weekly advance. France's CAC 40 index
slipped fractionally to 5,350.94.
In London, the FTSE 100 index edged up 0.1% to 7,539.59.
The Stoxx Europe 600 index on Friday rose 0.3%
(http://www.marketwatch.com/story/dax-on-track-for-another-record-as-bayer-rises-on-deal-news-2017-10-13)
and advanced 0.5% last week, a fifth week of gains.
(END) Dow Jones Newswires
October 16, 2017 04:16 ET (08:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
Von Mär 2024 bis Apr 2024
FTSE 100
Index Chart
Von Apr 2023 bis Apr 2024