- Catalan leader Carles Puigdemont is going to back down on calling independence
- Puigdemont will dissolve the local parliament and call snap elections in December
- IBEX (SPA35) surges on the news as the domestic political risks abate
While the European stock markets have thrived thus far the Spanish SPA35 has definitely stolen the show marking an amazing rally over the course of the recent minutes. This move has come on the heels of reports that Catalan leader Carles Puigdemont will dissolve the regional parliament and call snap elections in December (20).
His decision has been aimed at striving to avoid a constitutional clause (Article 155) giving the government in Madrid power to suspend the regional government in Barcelona. As a result, the Spanish stock market has soared rapidly as the domestic political risks seem to recede. If so, it would mean that the Spain’s equity market could be getting the most out of an economic improvement across the old continent.
The SPA35 shot up following upbeat remarks coming from Catalonia. The price may face a strong resistance in the vicinity of 10400 points, however once it’s beaten, an increase towards 10700 could be in the offing. Source: xStation5