The IBEX is feelin’ the fuckin’ “Rajoy takes over Catalonia” love on Monday, rising nearly enough to get the index back to where it was on Thursday when everyone still thought Puigdemont might eschew and independence declaration for an election.
Apparently, he’s now hiding in a closet somewhere. Here’s Bloomberg:
Carles Puigdemont, the self-styled “president of the Catalan Republic,” failed to show his face at the government’s headquarters on Monday as Spanish officials tightened their grip on the rebel region.
A few ousted Catalan officials posted pictures on social media of their arrival at work in a show of defiance after being fired by the Spanish government on Friday. Puigdemont posted an undated picture from inside the regional government headquarters on Instagram but made no public appearance as reporters swarmed around his office.
Yeah. Looks like all of that bombast dried up pretty quick over the weekend. Oh well. Sorry, Catalonia.
According to an El Mundo poll, the pro-independence bloc in Catalonia would lose a majority in new Catalan elections, getting 65 seats compared to the 68 they would need for a majority.
Meanwhile, Italian yields are falling as people are super-excited about Friday’s S&P upgrade.
We’re sticking with our knee-jerk assessment there:
Italy Raised to BBB From BBB- by S&P
just in time for things to go to shit in the periphery
— Heisenberg Report (@heisenbergrpt) October 27, 2017
We’ll leave you with some thoughts on the euro from SocGen’s Kit Juckes…
Via SocGen
Is this the week when the weight of speculative positioning (as described by CFTC data) finally flushes out Euro longs? We put the main support at EUR/USD 1.1460. I’m not fighting this move till then, though I’m watching the real yield spread this morning, as US yields are drifting back down (Jerome Powell now being the firm Fed favourite ahead of John Taylor).
