MADRID, May 29 (Xinhua) -- Political uncertainty affected the Spanish stock market index Ibex-35 on Tuesday midday due to the motion of no-confidence against Spanish Prime Minister Mariano Rajoy, called by the leader of the Spanish Socialist Party (PSOE) Pedro Sanchez.
The index Ibex-35 plummeted 3 percent at noon, falling from 9,500 to 9,459.80 points, down from the 9,764.40 points of Monday's closing time. The Spanish risk premium went up 25 points to 144 points in the morning.
On Monday, the Spanish stock market dropped, losing 0.63 percent in the session, with infrastructure company Tecnicas Reunidas and banks such as Bankinter and Banco Santander suffering the biggest losses.
Banks shares also dropped on Tuesday: Banco Sabadell lost 6.73 percent, followed by CaixaBank and Banco Santander, which went down 6.67 percent and 6.02 percent respectively.
The motion of non-confidence promoted by the PSOE will be discussed in the Congress of Deputies on Thursday and Friday.
The initiative of the Socialists derives from the sentence of the Gurtel trial, a corruption scandal that found the ruling People's Party guilty of benefiting economically from the corrupt network. The court fined them 245,492 euros (283,993 euros).
The motion of non-confidence needs an absolute majority in the Congress of Deputies (176 votes), so the Socialists need the support of other political parties.
Meanwhile, Rajoy recently said that the motion of non-confidence affected the stability of the country: "This motion is bad for Spain, bad for the Spanish, introduces a lot of uncertainty and is harmful to the future of all citizens," he said. (1 euro=1.16 U.S. dollars)
