News Daily Spot: The Dow plunges more than 3.5% due to the uncertainty generated by the elections

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The Dow plunges more than 3.5% due to the uncertainty generated by the elections

The Ibex 35 has fallen sharply in the first session after the holding of general elections and has yielded 3.6% to the political uncertainty that they have generated. 

Thus, the Spanish index, which has been the worst performing index registered in Europe, falling to 9,365 points and minimum mark last septiembre.

No value of the 35 that make up the index has managed to stay in positive, while the largest losses recorded banks and businesses with greater reliance on government regulation. 

So, CaixaBank has suffered a fall of 7%, AENA has exceeded 6.5% y Popular has also been above 6% .In addition, the risk premium of Spain rallied strongly to 125 points, 10 more than at the end of the day Friday. 

This movement is the result of the progress that has registered the 10-year bond offering a yield of 1.76%. Sales of Spanish debt by investors have been extended to the references to short and medium term, so that letters, notes and bonds have recorded increases in the session. 

Markets had expected a coalition PP-Citizen "is not good news at all, the markets were expecting a PP-Citizens Coalition" said Jan von Gerich, Nordea Bank, Bloomberg referring to the election result. 

In addition, Anders Moller, Danske Bank, says that "elections do not show a clear picture of who will govern." Meanwhile, Vincenzo Scarpetta, an analyst at think tank Open Europe claims to that agency that coalition talks will be difficult "given the existing hostility between the parties". 

"In the best case, Spain will have a weak government; at worst, the Spaniards might have to go back to the polls," he explains.

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