Black Friday: Spain’s Biggest One-Day Drop in its History

Yesterday, Spain’s equity market – as measured by its IBEX-35 – experienced its largest single day decline in in its history (the index was launched in 1992). The IBEX-35 fell 12.4%. The previous record (for largest daily decline) was 9.14% in 2008. Italy’s equity market fell by similar magnitude, but it is not clear if yesterday’s decline broke the record for a single day decline in Italian equities.

The decline in Spain’s stock market wasn’t quite as steep as Black Monday’s crash (Monday, October 19, 1987), when the Dow fell 22%. But a 12.4% decline is most definitely a rare event…a statistically significant event.

 

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