Spanish tensions keep Europe away from global stocks party

Global stock markets hit a record high on Wednesday with investors in exuberant mood in the United States overnight and in Asia later, but sentiment in Europe was soured by a political crisis gathering steam in Spain.

Tensions between Madrid and Catalonia have risen since the wealthy region held an independence referendum on Sunday that was tarnished by police violence.
The fallout from those clashes nudged Spanish stocks towards their biggest daily fall in more than a year on Wednesday, in turn dragging down other European bourses.

Catalonia would move as soon as this weekend to declare independence from Spain, the region's leader said.

"If you look at the European markets, the continued political worries in Spain is the main driver, and that uncertainty seems likely to continue if the regional government declares independence," Investec economist Ryan Djajasaputra said.

While world stocks hit a fresh record high, the pan-European STOXX 600 index was down 0.2 percent while Spain's IBEX fell as much as 2 percent, its biggest daily fall since August last year.
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