2017-10-06 19:45

If Catalonia Declares Secession, Here‘s How Assets Respond

SIPA/Scanpix
SIPA/Scanpix
Should the leaders of Spain‘s Catalonia region declare independence in the coming days, European markets look poised to march on even as domestic assets take a major hit.

Spanish government bonds -- which have weakened since the vote -- could be one of the biggest losers, while the country‘s banking and construction stocks are also vulnerable to further drops. The euro may escape damage, as a rebel declaration would unlikely have immediate ramifications for the future of Europe.

„It is not a threat to the euro,“ said Jan Loeys, chief investment strategist at JPMorgan Chase & Co., in an interview with Bloomberg Television. „This is a local problem. There will be affects on the local banks, local asset prices -- yes, Spanish equity prices will be hurt a bit.“

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