Ibex 35 falls 0.5% to 10,385 points after Barcelona and Cambrils attacks

European stocks were seen affected by terror attacks in the city of Barcelona and nearby town of Cambrils in the last 24 hours, with the Ibex 35 falling 0.56% to 10,385.70 points, and hitting a daily low of 10,284.80 points. The CAC 40 fell 0.8%, while the DAX 30 dropped 0.4% and the FTSE 100 also down 0.8%.

IBEX 35

11.154,600
1,56%

Stocks saw losses ‘affected by US political uncertainty and the attacks in Spain,” analysts at Banco Sabadell said. With little matters of economic importance being released on Friday, volume was well down on the normal rate.

In the Ibex, the tourism sector was particularly affected, although the worst performers were DIA (-2.55%) and Grifols (-2.53%). Airline IAG fell 2.21%, Aena by 1.94% and Melia Hotels by 1.97%. Big stocks such as Telefonica (-0.69%), Santander (-0.2%), Inditex (-0.96%) and BBVA (-0.21%) also saw losses on Friday. The best performers were Tecnicas Reunidas, which rose 1.35%, ArcelorMittal (+0.63%), Caixabank (+0.39%), Bankia (+0.27%), Sabadell (+0.05%) and Abertis (+0.03%).

Experts also make reference to the massive lorry attack on Las Ramblas in Barcelona which left 13 dead and hundreds injured. Only hours later in the coastal town of Cambrils one person was killed and five terrorists were gunned down after carrying explosive belts, while six more were injured. The five were killed by the local police force, the Mossos d’Escuadra. Although it’s not yet known if the attacks are connected, but they have struck to the heart of the Catalan and wider Spanish economy.

Events in the United States are also weighing on investors’ minds, after weeks of tension with North Korea and then pressure arriving on Donald trump for his reaction to the Charlottesville violence. Wall Street closed down 1% yesterday. According to reports in the US, the resignation of economic adviser Gary Cohn is imminent, and the major indices are seeing minor losses on Friday.

Investors have had little economic references to go on today, but German production prices were 2.3% higher in July, better than expected.

The euro is 0.17% higher at $1.1745. The common currency recovered lost ground on Thursday after European Central Bank meeting minutes were published. The document reflected that the members of the committee will announce a new purchasing programme in October. Oil fell 0.3% to fall below $51.

Despite the Ibex losses, Hans-Jörg Naumer, director of Allianz Global Investors, said that “in essence there are reasons to be relaxed. Generous liquidity in the central banks is encouraging investors to look for profitability, strong profits and macroeconomic figures are keeping them calm.”