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Madrid stocks, Euro slide on Catalonia vote, other European markets rise

LONDON (AFP) – The euro and the Spanish stock market slid on Monday as voting in a banned Catalonia independence referendum was marked by a violent police crackdown, but most other European markets rose.

Frankfurt, Paris and London equities posted moderate gains, with the British market buoyed somewhat as the collapse of Monarch Airlines handed a boost to rival carriers.

“Weekend political instability caused by the Catalonian referendum has done little to dent risk appetite, although the euro is down,” said analyst Joshua Mahony at trading firm IG.

“The collapse of Monarch Airlines has given a boost to the likes of EasyJet and International Airlines Group (IAG).”

Monarch Airlines ceased trading suddenly Monday following a financial collapse, the biggest failure of its kind in Britain, prompting the government into emergency action in returning home 110,000 stranded passengers.

The news sent EasyJet shares soaring 3.2 percent to 1,256 pence, while British Airways owner IAG rallied 1.43 percent to 602 pence.

Madrid stocks, however, shed more than one percent on the back of the disputed Catalonia vote, and the European single currency fell sharply against the dollar.

Spain will do “everything within the law” to prevent Catalonia from declaring independence, Justice Minister Rafael Catala said Monday, a day after Catalonia s regional government declared victory in a banned secession referendum.

Catalan president Carles Puigdemont declared late Sunday that Catalonia had won the right to break away from Spain after 90 percent of voters taking part in the referendum voted for independence, defying a sometimes violent police crackdown and fierce opposition from Madrid.

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