Catalexit? Ibex tanks 2.8% in its biggest fall since Brexit

Index posts its biggest daily loss since last June's Brexit referendum

  • Caixabank releases internal memo assuring it will do whatever it takes to guarantee deposits
  • Fear of capital crisis in Catalonia becomes increasingly possible
  • Spanish market is below the support level it has been above for the last five months
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Nieves Amigo
Bolsamania | 04 oct, 2017 18:09 - Actualizado: 18:09
caixabank portada

The Catalonia crisis pummels the Ibex 35. And this time with force. The index tanked 2.85% and fell below 10,000 points, the lower channel it has been moving between in the last five months, closing at 9,964 points. All the banks were down, especially Caixabank and Sabadell, which fell 5% and 5.7% respectively.

IBEX 35
11.467,300
  • 0,24%27,40
  • Max: 11.489,20
  • Min: 11.310,50
  • Volume: -
  • MM 200 : 11.289,95
17:35 20/12/24

The Ibex was once again the worst market in Europe after a news item which saw the Catalan entities confirm they are worried about what is happening. In an internal memo, Caixabank told its employees it will do whatever is necessary to protect the interests of its clients, investors and employees to ‘guarantee the security of its deposits’.

Oryzon was up 18% after communicating that it was changing its headquarters from Barcelona to Madrid.

Carles Puigdemont reiterated that he will declare independence for Catalonia in the coming days. There is a risk that savings could be blocked from the banks, and from there is the risk of a possible banking crisis in the region. Not long ago the market saw the fall of Popular after an accelerated withdrawal of deposits.

That said, the Ibex now looks towards 9,500 points. The Catalan banks were followed by Bankia, BBVA, Santander and Bankinter, all of which fell around 3%. There were also drops for Colonial (-5.5%) and Merlin (-4%).

Other stocks such as Telefonica were down, as well as Inditex.

On the other hand, only Abertis, Siemens Gamesa and ArcelorMittal posted gains on Wednesday.

International media reacted to an address from the King of Spain Felipe VI, who condemned the actions of the regional government.

Away from Catalonia, the World Bank lifted its economic growth forecasts for east Asia and the Pacific for 2017 and 2018, but added that prospects were generally cloudy as geopolitical tensions increase.

Mario Draghi will speak this evening about financial institutions in the EU, the supervision and regulation of markets and legislative themes.

PMI services in Europe were worse than expected in Italy and France, while they were better than expected in Spain, Germany and the eurozone.

TECHNICAL ANALYSIS

According to Bolsmanía analyst José María Rodríguez, “there is no need to talk much about Wednesday’s session. We just have to look at the graph to see where we are at. The worst of all is that it brings forward the support found at the base we have had for the last five months.”

“From a technical point of view there are no significant supports at the moment until between 9,550 and 9,600 points, coinciding with the anchor perforated in March.”

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