Spanish economy in need of a rise in interest rates

The Spanish equity market remains a small player in the European indices and while offering sound de...

The Spanish equity market remains a small player in the European indices and while offering sound defensive positions, holds few options for fund managers looking for a growth story. As a result of its relative size and the heavy skewing of the IBEX, with 65% in five banking and telecoms stocks, fund managers are prefering to look at the market along pan-European sector lines rather than as a market in its own right. Fund managers agree recent unimpressive performance by the Spanish equities market, which was down 4.2% year to date on 10 May, will continue with the market trading sideways...