November 14, 2019

Spanish equity markets look attractive notwithstanding inconclusive election results and slowing growth

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In Short

The November 10 elections did not solve the political deadlock in Spain, suggesting ongoing political uncertainty. The Spanish economy is set to slow but will still outperform the euro area average.
Spanish equity markets look attractive notwithstanding inconclusive election results and slowing growth
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Highlights:

  • The November 10 elections did not solve the political deadlock in Spain, suggesting ongoing political uncertainty.
  • Most importantly, a passing of a 2020 budget looks unlikely. Further fiscal consolidation will depend mainly on growth and falling interest rate expenditures.
  • The Spanish economy is set to slow but will still outperform the euro area average.
  • With respect to financial markets we detect value in Spanish equities. They are relatively undervalued and the price earnings differential versus the EMU index looks extreme.

Download the full publication below

SPANISH EQUITY MARKETS
LOOK ATTRACTIVE
NOTWITHSTANDING
INCONCLUSIVE ELECTION
RESULTS AND LOWING
GROWTH

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