SENTIMENT SHIFTED BACK TO THE RISK-AVERSE, as political risk flared further in Spain on the heels of a violent independence vote in Catalonia. With
further Spanish political turmoil expected
in the coming weeks, along with the populist bent shown in Angela Merkel's recent election victory, investors chose to assume a
'wait-and-see' mode today, taking profits after yesterday's defiant risk-taking. The defensive market tone was further exacerbated by numbers showing an
unexpected pullback in the U.K.'s construction sector. Nonetheless a 3.7% rise in construction materials firm
Ferguson PLC's shares buoyed the pan-European
Stoxx 600, while Spanish banks
CaixaBank SA and
Banco Santander SA rebounded from yesterday's pullback on Catalonia news.
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