Ibex forced below 9,400 after Spanish banks' EU sentencing

The Ibex 35 fell 0.38% to 9,371.70 points after it became known that the European Court of Justice forced Spanish banks to return all money gained from their ground clause mortgage schemes.

The banking sector pushed the index downwards during the session. Banco Popular, which fell 5.8%, picked up the wooden spoon for the day. In addition, Emilio Saracho was confirmed as president of the entity by its board. Banco Sabadell and Bankia lowered around 1%, while BBVA and Caixabank lost 0.9% and 0.8% respectively.

The European Court of Justice has ruled that the backdated payments relating to the so-called "ground clause" mortgages must be paid by the banks. The ruling is in contrast to the recommendation of the attorney general and the supreme court, which ordered the returns to be made from May 2013. The EU tribunal said that the ruling of the supreme court was "incompatible with EU rights".

It deals an unexpected blow to the Spanish financial sector, which will incur extra costs of 4 billion euros, according to the central Bank of Spain. The most affected bank will be Liberbank, who fell 12%.

On the positive side, Gamesa led the advances in the Ibex with a rise of 1.9%, after OZ Management said it would elevate its stake to 3%.

Aside from judicial decisions, tension continues in the markets after the attacks in Berlin and Ankara this week. In Germany, the police released a refugee that had been arrested following the attack, which left 12 people dead in a busy Christmas market. The authorities continue to search for the assailant. In Turkey, after the murder of the Russian ambassador there have been six arrests in connection with the incident.

Returning to the economic sector, France's largest banks have demanded that the European Central Bank exempt them from capital requirements, the first time a group of European lenders have done so, according to the Financial Times. In Italy, Montei dei Paschi falls once again with force after reporting that it only has liquidity for the next four months. It's widely expected to be bailed out by the Italian government.

TECHNICAL ANALYSIS

Losses in the banking sector is supposed to be an obstacle for the Ibex to finish the year positively, and it only needs to reach 9,544 points. From the point of view of Bolsamania technical analyst José María Rodríguez, reaching this level is hugely important.

"From the lows of the beginning of December, European stocks have risen more than 10%, meaning that we are in a situation of "maintaining" rather than trying to open up new gaps," explained Rodríguez.