While the world desperately tries to shrug off the implications of Catalonia's independence vote (and Rajoy's warnings of potential reactions), investors are rapidly exiting positions in Spanish stocks and bonds...
IBEX (the main Spanish stock index) just plunged to its lowest level since March (as European stocks - Stoxx 600 - hits a 4-mointh high)...
And Spanish sovereign bonds are getting clobbered...
The Catalan rebellion escalated on Tuesday, resulting in a day of "total stoppage" for the Catalan capital, in which Barcelona metro stations were closed, pickets blocked main roads and civil servants walked out on Tuesday in response to a strike called by pro-independence groups as separatist activists took to the streets of Barcelona to press home their demands for independence after winning an referendum on Sunday which despite a violent crackdown by the Spanish government, saw nearly 90% of the vote cast for splitting away from Madrid.
As we have detailed previously, the Spanish region of Catalonia in the North-Eastern corner of Spain will attempt to hold an independence referendum tomorrow, against the will of the central government in Madrid.
Apart from the Baleares and the Madrid region itself, Catalonia together with its capital Barcelona is one of the most economically-powerful parts of the country.
Live Feed:
http://www.rt.com/on-air/405139-demo-against-catalan-referendum/embed
The Spanish ambassador to UK, Carlos Bastarreche, has warned Catalan government’s move will have ‘serious implications’ for European stability...
Europe is watching “a slow-motion, low-cost coup d’etat” by the Catalan government.
“If the Catalan government succeed it will be a drama for Europe, starting with the UK, because it will mean that a region can disobey the rule of law.”
The Independent reports Spanish police storm Catalan government buildings to stop independence referendum.
As MishTalk's Mike Shedlock details, the Catalan president described the raids as a “co-ordinated police assault” and a “de facto state of emergency”.
Spanish national police have stormed ministries and buildings belonging to Catalonia’s regional government to put a stop to the region’s independence referendum.