Catalonia again chained to her views. The president of the generals, Puidgemont, recognized Catalonia’s right to independence, but the process is currently suspended.

“We propose to suspend the declaration of independence for several weeks, so that there is time for dialogue,” said Puidjimont.

The Spanish Prime Minister, Mariano Rajoy, is going to convene an urgent meeting to find a possible answer to the statements of the first person of Catalonia, Puidzhimont, that “the Catalans have earned the right to independence.”

The Spanish benchmark IBEX closed on Tuesday at around 10,142.30, losing 0.92% in light of the fact that market participants expect Puidzhimont’s speech in parliament.

The banking sector was among those for whom the session was the worst. Banco Santander and Caixabank fell 2.92% and 2.22%, respectively, to the levels of 5.61 and 4.05.

But investors are not the only ones who are considering the risks of division in Spain. On Tuesday, the IMF published its new global growth forecast, emphasizing that the world is facing two big challenges that will affect the state of the economy: Catalonia and Brexit.

The economic growth forecast for 2017 and 2018 increased by 1/10 percent compared with the IMF forecast for July. According to this forecast, about 75% of world economies continue to recover.

The IMF economists explained that the positive changes in the economies of Japan, Russia and the Eurozone surpassed the downward amendments of developed economies, such as the United States and the United Kingdom.

Analysts also pointed out that the economic recovery may soon stop if inflation, which is still weak, does not receive an impulse from the growth of wages. And, while developed economies are trying to speed up inflation, some markets are trying to slow it down.

The IMF believes that the early completion of the monetary stimulus program of the ECB may hinder the growth of the key nations of the block.

“In the midst of high political uncertainty and geopolitical tensions, political mistakes can leave a mark on market confidence, leading to tougher financial conditions and lower asset prices,” the document says.

https://www.fortfs.com

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