Victoria Torre (SelfBank) | A tense day was expected in Spanish financial markets, with the vote on the censure motion against the government of Mariano Rajoy and doubts about whether the President would resign. He didn´t and the censure motion was adopted with 180 votes in favour.
Thus there will be a change in the Spanish government, and there has been a change too in the direction of the market, which closed at 9,632.40 points, an increase of 1.76%. Some of the shares which had been most punished in earlier sessions were among those which rose most today: Acerinox led the table with a gain of 3.78%, followed by Santander (+ 3.32%), Sabadell (+3.2%), BBVA (+3.07) and Bankia (+2.96).
The only shares that finished the day in the red were Aena (-1.1%), Red Electrica (-0.21%) and Gas Natural (-0.14%). The other European markets have also shifted towards the buyers: the Eurostoxx 50 has risen by 1.38%, the German DAX by 0.95% and the French CAC by 1.24%.
Nevertheless, we do not believe that this is the end of the falls. It is possible that we will continue to talk much in the near future of Italy and Spain, and of Spain and Italy, and, of course, of Trump.
In Italy the spirits seem calmer, with the agreement to form a government with Conte at the head.
In Spain the adoption of the censure motion will be followed by a period of uncertainty. First the 2018 budget must be implemented. Thereafter many other problems will emerge, given that the configuration of the government complicates the implementation of policies. One of the issues that could generate tension in the markets are the concessions that Pedro Sanchez will have to make to be allowed to govern.
So far the financial markets have reacted calmly and the risk premium has returned to the ceiling of 100 points, far from its maximums this week. The interest on 10 year bonds has also moderated to 1.4
There have been no important headlines today in the corporate world. AENA has communicated the delay in the presentation of its strategic plan, while Atrazeneca, the partner of Almirall, has sought comme.rcial registration of Duaklir in the US.
Trump´s threat to impose tariffs on the imports of steel and aluminium from the EU, Canada and Mexico has been realised, and was announced yesterday. The concerns about the commercial implications and the impact the measure could have on economic growth have been renewed.
The Euro was traded below 1.3$, while Brent crude reached 77$ a barrel.
The US announced in the employment report the creation of 223.000 new jobs, which leaves the unemployment rate at 3.8%.
