The events in Catalonia affected the prices of Spanish assets, with the stock index sank by more than 3%. Spaniard bond yields rose and the euro fell against the dollar. Over 1300 Spanish companies have changed their address registration outside the troubled area, preparing for the worst-case scenario. Of course, the shares of the Iberian creditors were the main victims because of the worries possible counterwinds with borrowers and such a fall in collateral.
All of this is happening against the backdrop of good data from the Spanish economy, such as growth in business sentiment in the country and a fall in unemployment in the last quarter by more than 3%.
The other European markets did not demonstrate correlation with the IBEX index.
During the week, good data on consumption, business investments, the initial estimate of GDP growth in the third quarter was 3.0%.
The good season of the reports continues as the stock prices of IT Amazon, Google, Microsoft, Twitter reacted to strong company data.
The European Central Bank (ECB) extended the duration of the stimulus programme but reduced half the monthly volume of purchased assets, the regulator announced after its regular meeting.By the end of 2017, the quantitative easing plan continued at a monthly rate of EUR 60 billion, and by January this amount will be EUR 30 billion. The ECB extended the duration of the incentive plan until September 2018, but could extend it further if necessary.
In Bulgaria, in early November, BSE’s securities trading started, and a few days ago, our exchange-traded fund Expat Bulgaria SOFIX UCITS ETF was also registered by the German regulator BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) for the public offering of the shares of the fund in Germany. This is one of the necessary steps on the way to registering the Frankfurt Stock Exchange trading tool. I recall that at the beginning of the year Expat Bulgaria SOFIX UCITS ETF received registration from the British Financial Regulator Financial Condition Authority (FCA) for marketing in the UK. The procedure for the listing of the ETF on the London Stock Exchange continues.
Unfortunately, over the past week, the BSE continues to be in the correction phase, but there are already signs of raging in certain positions that imply future positive development for the native index.
