Wednesday February 13, 2019
The prospect of snap Parliamentary elections in Spain, perhaps in April, will likely drive money from the Madrid stock market into Spanish government bonds (Bonos) as political uncertainty rises.
On Wednesday, two Catalan independence parties voted against the Socialist government’s 2019 budget draft and as a result the proposal was rejected by Parliament. This has increased the chances of elections and will likely keep the main IBEX 35 stock market index under downward pressure.