Markets show hope for resolve in Spain over Catalan independence
Spain’s stock market opened strongly this morning, on relief that Catalonia’s president has stopped short of declaring independence.
The IBEX jumped over 1% in early trading, with traders welcoming President Carles Puigdemont’s pledge to negotiate with the Spanish government and suspend the independence move.
Stefan Scharffetter from Baader Bank spoke of the potential outcomes of uncertainty,
“The consequences on the Spanish stock market right now are pretty difficult to foresee. If uncertainty persists and if — what we don’t hope for — unrest breaks out in Catalonia, it will surely have consequences on yields of Spanish bonds. They will come under pressure. Spanish bonds will be sold and investors will look for safe havens. The same goes for Spanish stock markets.”
Spanish prime minister Mariano Rajoy responded with a firm stance against engaging with Puigdemont’s call. So the ball is once again back in the Catalan parliament’s court, once again sowing doubt across markets as to what the next steps might be.