Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

European economies marred by Spanish, Italian weakness as Catalan worries return

by

LONDON Oct 06, 2017 - 12:00 am GMT+3
 Reuters Photo
| Reuters Photo
by Oct 06, 2017 12:00 am

Europe's major benchmarks were set to end a tumultuous week on a slightly softer note, while Spanish bank stocks remained under pressure after Catalonia said it would defy Madrid and hold its planned parliament meeting on Monday.

The pan-European STOXX 600 dipped 0.2 percent in early trading, but remained on track for its fourth straight weekly gains.

Spain's IBEX fell back 0.6 percent after a strong rally in the previous session when investors' nerves over Catalonian independence eased.

The main Spanish benchmark was set for its worst week in two months, having sunk to its lowest level in more than six months on Wednesday as investors sold Spanish assets in the deepening political crisis.

Spanish bonds slid again on Friday as Catalonia's head of foreign affairs told the BBC the regional parliament would make a decision on independence.

Jesus Castillo, southern Europe economist at Natixis, said the situation in Catalonia would get worse before it got better, adding the crisis could hit investment in the region.

Shares in Catalonia-headquartered Caixabank and Banco Sabadell extended early losses to fall as much as 2.8 percent on Friday, after the previous session's strong rally on news they were looking to move their base out of Barcelona.

"A change of legal HQ would provide greater certainty on issues such as banking regulation and deposit insurance," said Berenberg sales traders in a note to clients.

"However a considerable amount of uncertainty remains, with both banks having large exposures to the region ... both banks risk losing customers by being perceived as Catalan, yet risk damaging relationships if they decide to relocate," they added.

Despite the Catalan crisis both stocks remain among the best-performing euro zone banks, up more than 20 percent year-to-date.

Bank stocks in Italy, another periphery market, were also sinking, with Ubi Banca, Banco BPM, BPER Banca and Unicredit the worst-performing. Italy's FTSE MIB fell 0.6 percent, also set for its worst week in two months.

Germany's DAX inched up to a record high in early deals, helped by strong industrial orders data.

A weakening euro has supported the exporter-heavy index, and euro zone stocks were set for a sixth week of gains, holding near five-month highs.

Outside of Spain and Italy, moves were modest as investors' focus turned away from the Catalan crisis and instead to U.S. non-farm payrolls data later on Friday, with analysts expecting to see a hit from Hurricane Harvey.

Shares in Danish biotech company Genmab fell 2.7 percent after JP Morgan cut its rating to neutral, while Finnish industrial technology firm Wartsila dropped 3 percent after HSBC cut it to "hold", saying it saw limited upwards momentum for the stock.

About the author
Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University
  • shortlink copied
  • Last Update: Oct 06, 2017 4:47 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    homepage
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Postcards from Greenland as climate change melts glaciers
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021