CNMV: In Spain, the financial market stress indicator remains at levels compatible with reduced stress

The Spanish National Securities Market Commission (CNMV) has published its quarterly Bulletin for the third quarter of 2018. This edition includes the report “Securities markets and their agents:

situation and outlook”, which analyses in depth the development of national and international financial markets in recent months, as well as that of investment vehicles, investment firms, CIS management companies and other intermediaries.

Changes in the conditions of the international macroeconomic environment

This report highlights the relative changes in the conditions of the international macroeconomic environment, recently marked by the increase in tensions related to a possible trade war and the uncertainties generated in some advanced economies such as Italy, and emerging economies such as Argentina and Turkey, all pointing to a revision in growth forecasts, including that of Spain, which nevertheless maintains a positive differential of half a percentage point with respect to the euro zone.

In the equity markets, the advances in the North American indices contrast with the regression experienced by the European ones throughout the year, which were not offset by the

slight progress registered in the third quarter. In the debt markets, longterm interest rates have risen substantially in the US, UK and Italy,

while in Germany and France they have remained stable, and in Spain and Portugal they have fallen slightly.

In Spain, the financial market stress indicator remains at levels compatible with reduced stress (0.18 as of 28 September). For its part, liquidity in the equity market has remained at satisfactory levels.

Finally, it is worth noting the continued expansion of the mutual fund industry, whose assets increased by 3.2% in the first six months of the year (to stand at 274 billion euros), and the slight downturn of the business of securities firms and agencies, whose aggregate pre-tax profit fell by 34.4% in the first half of the year to 138.2 million euros in annualised terms.

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