Difficult day for Madrid Stock Exchange, which in the morning lost more than two percentage points, recording the worst decline among those of the main European price lists. Investors would be worried by the growing popularity of We can, Spanish alternative left party that opposes austerity policies.
On Saturday, tens of thousands of people took part in the Spanish capital in what has so far been the largest demonstration in support of Podemos, which supports positions similar to those of Syriza, the party of Alexis Tsipras which on 25 January won the Greek general election.
“The situation in Greece appears manageable from the point of view of investors, given the size of the economy – commented Alexandre Baradez, chief market analyst of IG France -. But if the anti-austerity wave reaches Spain, that will be another story. That's why we are cutting exposure to Spain this morning, despite the relatively good ones PMI data".
Born in January 2014 on the initiative of some leaders of the Indignados movement – which was exhausted in 2013 – Podemos quickly gained acclaim rejecting austerity policies adopted by the Rajoy Government e denouncing the system of corruption which weighs down the country (over 2 defendants in 150 investigations opened at all levels of the public administration). Last May, Pablo Iglesias's party thus obtained one million two hundred thousand votes in the European elections, winning five seats.
According to a survey released in early January by El Pais radio, Podemos is currently the leading party in the country with 27,5% of the vote.
