Financial concerns over the fallout from the recent Catalna independence referendum have been stayed with global indices resurging on Monday.
German and Chinese stocks led the rally with major indices in both countries hitting record levels. In Frankfurt, the DAX reached an all-time high based on industrial output that beat forecasts and in China blue-chip stocks on the CSI 300 index touched their highest levels since 2015.
“Some of the uncertainty has been reduced — the tone from Puigdemont has become more conciliatory and (Spain’s Prime Minister Mariano) Rajoy has also stepped back,” Peter Chatwell, analyst at Mizuho, said.
Spanish 10-year government bond yield was down 6.5 basis points at 1.65% but the country’s broader shares performance was strong as tensions between Spain and its wealthy region of Catalonia were perceived to ease.