Contagion Spreads To Europe Amid Spanish Bank Bloodbath As Catalonia Readies Independence Declaration

Spanish stocks have given back all of their gains from yesterday's chaotic on-again-off-again headline-hockey surrounding Catalan independence as it appears all but inevitable that the separatists will pull the trigger any minute now.

The contagion has spread to European bank stocks which have tumbled to unchanged on the week...

And Sabadell and Caixa stocks are both slumping...

However, we note that both Spanish and Catalan bond yields are dropping...

And Sabadell and Caixa bonds are rallying...

We can only assume on the back of Draghi's promises yesterday.



NoDebt Fri, 10/27/2017 - 08:21 Permalink

I got in late on the last thread with this so here's a repost on where things stand at this point...."Catalan Chaos Continues As Secessionists Slither Slowly South Towards "Sorry, Please Save Us From Ourselves."  Rajoy Readies Retaliation Response."Update to original post:  "Banks Bumping Bottom Based On Bad Burp In Brussels." 

bshirley1968 Fri, 10/27/2017 - 08:41 Permalink

Methinks someone is using the headlines to take advantage of the seesaw volatility.  Of course that "someone" can front run the headlines since they are making them.Give it a few hours and the negotiations will be back on for another vote in catalonia.   Blah, blah, blah and stocks will "surge".

Jtrillian Fri, 10/27/2017 - 08:46 Permalink

Doom porn with choppy charts.  There is no contagion at this time. When multiple European markets are down 10% with bond yields spiking, then we can legitimately start talking about contagion.  Until then, it's business as usual. 

shamus001 Jtrillian Fri, 10/27/2017 - 08:53 Permalink

I agree.  As for flip-flopping, to avoid the lynch-mob, Im of the thought his *ss was going to go away for a loooong time, so might as well fight jailtime with an armed mob at your back! LolThat is...they better get armed REAL quick before the spanish tanks roll over all of the progressive hipster European rebels!

In reply to by Jtrillian

Internet-is-Beast Fri, 10/27/2017 - 08:56 Permalink

Start with the African Margrave virus epidemic and go from there. Must be some refugees who shipwrecked off the coast of Catalonia. You read it here on ZH first. profilactic /sarc