Wednesday 23 August 2017

Second term for Rajoy hits Spain's IBEX

Spain’s benchmark IBEX index, which has shown resilience during months of political gridlock, fell 0.6 percent after lawmakers agreed to grant conservative leader Mariano Rajoy a second term as prime minister. Photographer: Angel Navarrete/Bloomberg via Getty Images
Spain’s benchmark IBEX index, which has shown resilience during months of political gridlock, fell 0.6 percent after lawmakers agreed to grant conservative leader Mariano Rajoy a second term as prime minister. Photographer: Angel Navarrete/Bloomberg via Getty Images

Reuters/Dearbhail McDonald

European equities fell for a sixth straight session yesterday, with energy shares tracking weaker crude oil prices and financial stocks losing ground.

Europe's STOXX 600 fell 0.5 percent, ending its second month of losses.

Spain's benchmark IBEX index, which has shown resilience during months of political gridlock, fell 0.6 percent after lawmakers agreed to grant conservative leader Mariano Rajoy a second term as prime minister.

"Over the course of the last few weeks, it became quite clear that Rajoy was going to get a free run.

"Also, the Spanish economy has done pretty well even without a stable government and the market has performed relatively better," said Peter Dixon, economist at Commerzbank.

"Investors are treating Spain like all other markets. When everybody else gets some wobble, then Spain gets it too."

The IBEX is down 4.2 percent so far this year, outperforming the 7.2 percent decline in the STOXX 600. In the United States, stocks were little changed as investors desisted from taking large positions ahead of the outcome of the election next week.

The FBI's review of newly discovered emails related to Hillary Clinton's use of a private server added to the uncertainty over US presidential elections.

While Mrs Clinton had opened a recent lead over her unpredictable Republican rival Donald Trump in national polls, it had been narrowing even before the email controversy resurfaced.

In Ireland, the Iseq index closed at 5,903.56

Movers included Total Produce, whose shares rose 2.35pc to €1.74, with Kingspan rising 2.04 percentage points to €22.30.

Paddy Power's shares rose to €94.30.

Dublin-based tech firm Datalex saw its shares fall 1.47 percentage points to €3.35.

Irish Independent

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