Madrid stocks sink on Catalan woes; London hits record

The Spanish stock market sank Friday after a victory for Catalan separatists in a snap poll, but London hit a record peak in a "Santa Rally" before closing early for Christmas.

Madrid's benchmark IBEX 35 index of top companies dived by around 1.5 percent in early morning deals.

The European single currency meanwhile declined against the dollar, having already stumbled as the Catalan result filtered across traders' screens.

Catalonia plunged into further uncertainty Friday after separatists won a crucial snap poll called following a failed independence bid that rattled Europe and triggered Spain's worst political crisis in decades.

With turnout at a record high of 82 percent, Thursday's election handed a mandate back to the region's ousted separatist leaders after they campaigned from exile and behind bars.

"The IBEX 35 is firmly in the red," said CMC Markets analyst David Madden.

"This result will be a thorn in the side of the Madrid administration as it keep the independence issue on the table.

"While the political uncertainty hangs over Catalonia, investors will be looking to steer clear of Spanish stocks."

- London zooms to record -

London's FTSE 100 index however zoomed its way to another intra-day record high at 7,614.40 points in low-volume trade, boosted by overnight Wall Street gains and the softer pound.

"I think the softer pound has played an important role over the last month or so, as has the tax reform-fuelled Santa rally in the US, with a number of FTSE 100 firms having exposure to the economy," Oanda analyst Craig Erlam told AFP.

However, the FTSE later closed at 1230 GMT for an early finish at 7,592.66 points, down almost 0.2 percent from Thursday's closing level..

Trade was choppy with many investors away for extended Christmas and New Year festivities.

"The FTSE 100 is finishing in suitably festive fashion, having carved out a new record high," noted IG analyst Chris Beauchamp.

"Meanwhile in Europe the atmosphere is less convivial, as risk assets take a knock following the separatists' narrow victory in the Catalonia poll yesterday."

Frankfurt stocks declined 0.3 percent and Paris dipped 0.5 percent, shrouded by fresh uncertainty in Spain -- one of the eurozone's biggest economies.

"The calling of regional elections in Catalonia ... appears to have backfired for the Spanish government as the pro-independence parties won enough seats to form a regional coalition government," added London Capital Group analyst Jasper Lawler.

The Frankfurt, Madrid and Paris stock markets trade as normal on Friday but London faced a half-day session.

All four European bourses will be shut next Monday and Tuesday for Christmas and Boxing Day, but re-open for business on Wednesday.

Most Asian equity markets went into the Christmas break on a positive note, picking up the baton from Wall Street.

Global equities have rallied over the past year on hopes Donald Trump's key election promise to cut taxes would boost corporate profits and put money in people's pockets, but traders cashed in their profits soon after the bill was passed this week.

However, Wall Street enjoyed a Santa Rally on Thursday on the passage of sweeping tax cuts, snapping a two-day losing streak.

- Bitcoin slumps -

Bitcoin prices plunged by a quarter on Friday as investors cashed out just before Christmas after the volatile currency's stratospheric rise in recent weeks.

The precipitous drop comes after a series of warnings by analysts and governments about a bubble that could burst at any moment as investors, many inexperienced, piled into the unit hoping to enjoy some of the eye-watering gains.

The controversial cryptocurrency fell to just above $12,000.

That is down almost 40 percent down from its record high of $19,500 seen on Monday, according to Bloomberg.

- Key figures around 1245 GMT -

Madrid - IBEX 35: DOWN 1.2 percent at 10,177.10 points

London - FTSE 100: DOWN 0.2 percent at 7,592.66 (close)

Frankfurt - DAX 30: DOWN 0.3 percent at 13,072.40

Paris - CAC 40: DOWN 0.5 percent at 5,359.75

EURO STOXX 50: DOWN 0.5 percent at 3,552.85

Tokyo - Nikkei 225: UP 0.2 percent at 22,902.76 (close)

Hong Kong - Hang Seng: UP 0.7 percent at 29,578.01 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,297.06 (close)

New York - DOW: UP 0.2 percent at 24,782.29 (close)

Euro/dollar: DOWN at $1.1854 from $1.1876 at 2200 GMT

Pound/dollar: DOWN at $1.3373 from $1.3384

Dollar/yen: UP at 113.36 yen from 113.30 yen

Oil - Brent North Sea: DOWN 41 cents at $64.49 per barrel

Oil - West Texas Intermediate: DOWN 42 cents at $57.94