The Spanish stock exchange is falling, and not because of Catalonia. In fact, today, the Ibex 35 has fallen sharply, suddenly losing 300 points and ending up below the 9,900-point mark. Unlike the other European stock exchanges, recording general growth (except in Milan, due to Italy's political situation), the Spanish index has fallen sharply. The drop is down to the political instability in Spain, with the motion of no-confidence in prime minister Rajoy proposed by PSOE and the possibility of early elections proposed by Cs.
As various opposition leaders have made calls for a motion of no-confidence and/or early elections, the Spanish stock exchange started to fall. Within an hour, the Ibex index had already lost 300 points.
Risk premium also hit
The upheaval hit the country's risk premium hard, which has passed 100 basis points for the first time in months. At the same time, Spanish debt has also suffered, with its 10-year benchmark yield increasing 5% to 1.47%.
Graph: Carlota Serra
Banks lead the fall
The steepest falls have been seen by the banks. CaixaBank led with loses up to 5%; Santander and BBVA both lost almost 3%. They were followed by Bankia, Sabadell and Bankinter, with falls around 2%.