Ibex plunges (-1.7%) as the possibility of new general elections in Spain arises

All the banks crashed today in the face of political events, starting with CaixaBank, which has come to yield 5% and closed with a fall of 3.77%, followed by BBVA (-2.79%) and Santander (- 2.65%), Bankinter (-2.56%), Bankia (-2.36%) and Sabadell (-1.82%).

"The banks are still very weak, with BBVA and Santander in the lead, it is worth keeping a close eye on the level of 5 euros in Santander, since the drilling of this support can accelerate the corrective phase of the last sessions even more", warned José María Rodríguez, expert of 'Bolsamanía', early this Friday. Santander has closed at just 4.99 euros.

The electrical sector also records sharp declines. Gas Natural Fenosa plunged by 4% and Endesa by 3.4%. Red Eléctrica falls 3.3% and Enagás 3.2%, while Iberdrola drops 2.7%. Investors anticipate that a change in government may increase uncertainty about the future regulatory framework for these companies.

Another very bearish value is Repsol (-2.9%), which ends the week with falls of over 7% and makes the historic maximums marked last week a mirage. Brent oil falls 2.8% to $ 76.58 after Russia has confirmed that it is willing to increase its production to compensate for the lower pumping of Venezuela and Iran.

In positive, very few values. Only the airline IAG (+ 2%), benefited by the drop in oil, Amadeus (+ 0.5%) and Meliá Hotels (+ 0.1%). In the main board, Sniace (+ 2.9%) is the most bullish value, while Clínica Baviera (-7%), GAM (-6%) and Duro Felguera (-5%) have led the sales.

In addition, in the currency market the euro has returned to mark an annual minimum and from the month of November in its crusade against the dollar, at levels of $ 1,1647. Community currencies fell in value by 0.47% to $ 1,1667 at the close of European markets.

It should be noted that the volume of business at this time in the Ibex is close to what was negotiated this Thursday throughout the day and that already exceeds the negotiated throughout Monday. It is also important to emphasize that the Spanish risk premium has climbed to its highest level in the last five months, after rebounding 13% to 104 points.

"At this point, the chances of the PP stepping down are minimal," says Felipe López, Self Bank expert. "Many investors will move away from the Spanish stock market until they see the situation clearer," he adds.

The political 'crisis' in Spain, with the possibility of early elections, comes in addition to the political crisis in Italy. It could be said that the peripheral countries, with political situations that are less complicated, are once again a problem for Europe.

Internationally, the news that Donald Trump's decision to cancel the meeting, scheduled for June 12, with the North Korean leader Kim Jong-un has been taken back. The president said that it finally might or might not happen. The meeting had opened a panorama of hope to put an end to the tensions between the two powers and its cancellation is a return to the starting point. The leader of North Korea has said he is willing to speak "at any time".

The week ends with the investors focused on Italy (the premium of Italian risk recounts a 5% and surpasses the 200 basic points for the first time in a year) and of knowing the name of the ministers that will integrate the Executive ' led 'by Giuseppe Conte.

In addition, in Europe this Friday the new European law on personal data protection, which is expected to have a significant impact on some of the largest technology companies in the world has come into force.

On the data front, the IFO of the current situation in May from Germany has remained at 106.0, above the 105.5 expected. In the United Kingdom, the GDP of the first quarter moderates its growth to 1.2%.