Spanish IBEX Recovers Losses Despite Catalonia Crisis

Spanish stocks managed to come back from early lows, despite fresh protests after Madrid arrested independence leaders. Buying on dips is helping to slowdown the decline in the index, which has been steadily heading south since peaking at 11184 in May and is currently just over 10000.

After underperforming earlier in the session, the index is now outperforming and up 0.34%, while the DAX is hovering around the 13,000 mark and up a mere 0.02% from Monday’s close.

Action Economics said that on the one hand, Madrid taking over control in Barcelona, which Prime Minister Mariano Rajoy is reportedly planning to do if a second ultimatum to Catalonia’s President isn’t met by Thursday, would be welcomed as a way to remove uncertainty, but if the conflicts escalates into a full blown ‘civil war’, the damage will clearly be deeper.

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