Catalan pro-independence parties win poll

The Euro fell sharply following the Catalan vote which resulted in the three pro-independence parties claiming a narrow victory, although the centre-right, pro-unionist Citizens party was the single biggest winner. The vote attracted a record turnout of more than 80%, dismissing fears that holding the election on a weekday rather than the usual Sunday would hit turnout. Spanish bonds fell along with peripheral European government debt, while stocks in Europe also struggled for traction with the Stoxx Europe 600 Index falling by 0.1% as of this morning. The result indicates that Spain’s political turmoil is set to continue, which is likely to be a severe blow to the Spanish government which had hoped the vote would end the push for succession.  Elsewhere, the FTSE 100 Index continues to break all-time highs, while yields on UK and US 10-year government bonds ease from their recent highs.