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- Catalonia can declare independence if it has not signed an agreement with Spain – a fall in indices and EUR
Catalonia can declare independence if it has not signed an agreement with Spain - a fall in indices and EUR
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Loading...Catalоnian President Carles Puccémon said the regional parliament could declare independence from Spain unless the country agrees to talk.
The news sent the indices down as the DAX traded 0.77% down, and the CAC40 with -0.67%.
In the first minutes after the news EUR/USD fell by 0.39%
Spanish Prime Minister Mariano Rajoy said his government will launch a process of direct control over the Catalan regional administration under Article 155 of the Constitution if Puccademon does not withdraw from his independence decision.
The triggering of Article 155, will mean an institutional crisis in Spain and will most likely scare the financial markets. There are also no massive protests and riots in the region that will further exert pressure on the stock market and EUR.
Spanish IBEX35 reflected the news strongly negative by depreciating 0.85% in just a few minutes:
Source: Bloomberg Pro Terminal
Young trader Peter Milanov
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