US banking giant Goldman Sachs has said that Catalunya continues to destabilise global markets amid one of the worst weeks for Wall Street where the stock market reached a seven-year low.

According to a report released by the bank, it outlined that Catalunya continued to dictate events not only in the Spanish banking system but also more globally.

The report said: “We continue to see the political events related to Catalunya as an important risk for the recovery of Spain.”

This comes after Spanish PM Mariano Rajoy increased Spain’s growth to 2.5%.

”This year, 2018, we will have a growth forecast of at least 2.5 percent, with the creation of 400,000 jobs,” said Rajoy.

The report comes as the US stock market recovered from a shock week that saw $4 trillion wiped off global stocks as the US Dow Jones tanked 1,175 points.

 

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