BBVA and other Spanish banks fall after Trump elected president
** Shares of Spanish bank BBVA BBVA.MC are down over 6% after Donald Trump was elected U.S. president, which could have impact in Mexico, its biggest market
** Nuria Alvarez, analyst at Madrid-based brokerage Renta 4, says the exposure of BBVA to Mexico is the main explanation for its slip on Wednesday, but adds the market is making a "negative and exaggerated interpretation" of U.S. results' impact in Mexico
** Renta 4 analyst sees Trump's victory does not have to be bad for Latin American economies and some investments to China, that Trump wants to stop, "will be channelled to Mexico and the rest of the Latin American countries"
** Other major Spanish banks, such as Caixabank CABK.MC and Unicaja UNI.MC, were also down as the market is interpreting Trump's policy might weigh on the European economy
** In this context, "the European Central Bank might have to embark on more aggressive interest rates to preserve economic growth," she says
** "Spanish banks with even a higher weight of variable rates in their portfolios are falling (therefore) further," she adds
** Sabadell also fell more than 6.5% "linked to the issue of the contagion effect due to the swap equation offered by BBVA", Alvarez adds
Reporting by Tiago Brandao and Jesus Aguado
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