The Spanish banking sector’s stock market rally has been suddenly cut short. The listed banks’ index had risen over 45% since the minimum levels of June 2016 until the first week of January. But since then, it is seeing a correction. Two matters of concern for investors are the impact of the floor clauses ruling on the banks profit and loss account, as well as the problems of the Italian banks.Read More
Concerns about auto sector in 2017 are rising as US president-elect Donald Trump threats against US companies relocating their production to Mexico. Local players have capitulated to the President-elect’s dictates- Ford cancelled plans to build a new Mexican plant- which suggests that the industry’s spine is a weak one after all as it lobbies its way into the new balance of power.
The January update of the IMF’s “World Economic Outlook”, published in October, confirms that Spain will recover this year all the GDP growth lost during the economic crisis, exceeding in 2017 for the first time the volume of growth in 2008.
ECB’s bond-buying scheme creates some bout of scarcity on the market, but not necessarily resulting in lower yields. From their temporary lows after the Brexit shock, yields on European government bonds have rebounded in a material way. In the case of 10-year German Bunds, the increase was from -0.2% to +0.3%, while their French counterpart moved from 0.1% to 0.9%.Read More