Update: Euro hits four-month high despite Catalan uncertainty

PM Rajoy yet to accept regional election outcome

The euro shot to a four-month high in mid-morning trading despite the fact Spanish Prime Minister Mariano Rajoy is yet to accept the result of the regional Catalan elections held on 21 December.

PM Rajoy has refused to accept the result of the regional Catalan elections, which saw pro-independence parties gain an absolute overall majority. The three pro-independence parties won 70 seats out of a possible 135, ahead of the 68 required to form a government. Opinion polls had predicted the separatists would fall short of a majority. Furthermore, according to the BBC, Spain's economy minister Luis de Guindos said the independence crisis had cost the country €1bn with Catalan growth slowing from 0.9% to 0.4% in Q4. "Catalonia used to have growth above that of Spain, it was one ...