Catalan declaration of independence hits stock markets, bonds and euro
Markets stabilised somewhat after Spanish Prime Minister Mariano Rajoy tweeted that the rule of law would “restore legality” in Catalonia and called for calm.
Spanish shares accelerated losses, Spain’s 10 year government bond yields hit a day high and the euro dipped against the dollar on Friday after Catalonia’s regional parliament declared independence.
Spain's IBEX fell as much 2.1 percent to a four-day low and euro zone banking shares .SX7E as much as 1.8 percent.
The gap between Spanish ES10YT TWEB and German 10-year bond yield de10yt=tweb also widened to 120 basis points, the most in four days.
Markets stabilised somewhat after Spanish Prime Minister Mariano Rajoy tweeted that the rule of law would “restore legality” in Catalonia and called for calm.