Spanish assets outperform European peers, shrugging off Catalonian election outcome

Spanish assets are on the rise, beating their European peers, in spite of Catalonian election over the weekend, where pro-independence party is set to form the government.

This is an extreme contrast, where many analysts has expected sharp selloffs if pro-independence party wins the day, since these parties have been trying to pull Catalonian region out of Spain.

• Participation has been at historic high in the election at 75%, where Junts Pel Si (Pro-independence platform) along with Unity Candidacy, which also supports independence won 47.7% of the total vote and absolute majority in Catalonia's 135 members strong regional parliament.

Spanish assets are the top performer in Europe, in spite of election outcome.

• Spanish benchmark stock index is currently trading at 9464, down -0.61%, compared to -1.7% drop France's CAC40, -1.2% drop in Italy's FTSEMIB and -1.2% drop in German DAX.
• Spanish 10 year yield dropped to 1.94% from 2.01% in yesterday's close. Looking to shed some of the gains from here.

Looking at the markets it can be said that though likelihood of independence for Catalonia has increased, independence is unlikely in the near term given the high cost associated including exit from European Union. However it surely puts Catalonian government ina strong position to negotiate greater concession from central.

Spanish General Election to be held this year on December.