“Big league!”
Not really, but the IBEX is up sharply on the day and is headed for a one-month high.
Apparently, Puigdemont is going to call regional elections as opposed to declaring independence, which is obviously preferable if you’re long risk or otherwise hoping periphery spreads don’t explode, with God knows what kind of knock-on effects.
Here’s the chart:
Advance is led by the banks: Banco de Sabadell, up 4.8%, Mapfre, up 4.6%, Santander up 2.9%.
Spain 10-year yields are dropping on the news as well:
Meanwhile, Madrid is trolling Puigdemont. “The scenario of independence is one that we cannot allow and which will not happen,” Economy Minister Luis de Guindos said today in a radio interview, adding that the region’s economy is already slowing down “significantly.”
“They’re caught in a mousetrap. It seems their own decisions are producing vertigo,” he added.
It’s also worth noting that PSOE is going to ask to drop article 155 if Puigdemont does indeed call for regional elections. That’s according to La Vanguardia.
The only question here would be this: ok, great but what happens after the elections?
