Relief after Catalonia’s putting independence plan on hold buoys Spanish stocks
London — Spanish stocks and bonds rallied and the euro hit a two-week high on Wednesday as European markets took relief from Catalonia stopping short of declaring immediate independence from Madrid. Catalonia’s leader Carles Puigdemont balked on Tuesday at making a formal declaration of independence, saying the plan would be put on hold and that he instead wanted talks with Spain’s government over the region’s future. The move disappointed many pro-independence supporters but pleased financial markets with hopes the gesture would mark a de-escalation of Spain’s worst political crisis since an attempted military coup in 1981. MSCI’s 47-country world stocks index briefly hit a fresh record high in opening European trading as a 1.5% jump in Spain’s Ibex added to a 10-year high set by Asian shares overnight. The biggest surge came from Spanish banks which rallied as much as 4%, while the country’s government bond yields — which gauge political tension levels — saw their second biggest f...
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