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IBEX 35 Moves Lower Ahead of Referendum, Other European Markets Mixed

Published 09/29/2017, 03:48 AM
Spanish stock market

Investing.com - Spain's benchmark index moved lower on Friday, as investors remained cautious ahead of a highly- vote for Catalonia's independence scheduled on Sunday, while other European markets opened mixed as sentiment was overall healthy.

The EURO STOXX 50 eased up 0.09%, France’s CAC 40 slipped 0.08%, while Germany’s DAX 30 rose 0.22% and Spain's IBEX 35 was down 0.45% by 03:40 a.m. ET (07:40 GMT).

Spain's Catalonia region was planning to vote on its independence from the rest of the country on Sunday, even as the government declared the vote illegal.

The vote is the most serious political crisis facing Spain since it returned to democracy following the death of military dictator Francisco Franco in 1975.

Elsewhere, market sentiment was supported by hopes for a major U.S. tax overhaul in the U.S. President Donald Trump unveiled a plan on Wednesday calling for lower tax rates for businesses and individuals as part of a comprehensive overhaul of the U.S. tax code.

However, the proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) slid 0.38% and 0.36%, while Germany's Deutsche Bank (DE:DBKGn) declined 0.30%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) fell 0.21% and 0.22% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) retreated 0.328% and 0.21%.

Elsewhere, Linde AG (DE:LING) shares rallied 1.43% after Praxair (NYSE:PX) shareholders on Wednesday voted in favour of merger with the German chemical company.

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The approval completes a key milestone in combining two major companies in the global industrial gas industry under a new holding company named “Linde plc.”

On the downside, Bouygues (PA:BOUY) shares slumped 0.60% following reports this week that the French conglomerate could receive up to €500 million in special payouts as a shareholder in Alstom (PA:ALSO) following the company's deal with Germany's Siemens AG (DE:SIEGn) to merge their rail operations.

In London, commodity-heavy FTSE 100 gained 0.35%, boosted by sharp gains in the mining sector.

Shares in Glencore (LON:GLEN) jumped 1.23% and Anglo American (LON:AAL) rallied 1.76%, while rival company Antofagasta (LON:ANTO) rallied 1.99%.

EasyJet added to gains, with shares up 1.75% following news the airliner paired with U.S. firm Wright Electric to develop a battery-powered aircraft fleet that can be used for its short haul flights.

In the financial sector, stocks were mixed. Lloyds Banking (LON:LLOY) slipped 0.15% and Barclays (LON:BARC) edged 0.16% lower, while the Royal Bank of Scotland (LON:RBS) inched up 0.01% and HSBC Holdings (LON:HSBA) added 0.18%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% uptick, S&P 500 futures signaled a 0.06% dip, while the Nasdaq 100 futures indicated a 0.06% gain.

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