Reuters: European markets rally on Friday as Scotland's decision to stay in the United Kingdom eased investors past the latest in a recent run of global political obstacles.
The camp for Scotland to remain in the UK was ahead 55 percent to 45 percent, an outcome likely to bring relief to a number of countries in Europe, particularly Spain, which is experiencing similar secessionist pressures in Catalonia.
London's FTSE share index hit a two-week high. Spain's IBEX outperformed with a 1.3 percent rise, helped by a fall in Spanish 10-year government bond yields as markets viewed Scotland's "No" vote as having reduced prospects of a stronger push for a breakaway in Catalonia.
Global stocks were already heading towards their fifth weekly gain in the last six. They have been boosted by further assurances this week that interest rates are likely to remain at record lows in many major economies.
The moods were also strengthened by news that Chinese internet giant Alibaba priced its IPO at $68 a share on Thursday, the top end of the expected range that raises $21.8 billion in one of the world's largest-ever stock offerings.
Scotland's vote against independence ended a fraught two weeks for markets that had seen the value of sterling fall sharply after some polls suggested the 307-year old union was on the brink of collapse. The pound's bounce against the dollar was not a large as some had predicted, hovering at $1.6469 as European trading settled. But it was stronger against other currencies, rising to a two-year high of 78.10 pence per euro and a six-year high of 180.70 yen.
The outcome also reduces the likelihood of its leaving the European Union, potentially a much greater risk for markets and something Scottish independence might well have precipitated, analysts said.
The cheer spread to the rest of Europe's bourses. The euro zone's blue-chip Euro STOXX 50 index rose 0.7 percent, while Germany's DAX and France's CAC both advanced by 0.6 percent.
"For the markets in general, the Scottish result is probably the best outcome because the 'Yes' vote winning was really not priced in and that could have caused chaos, with contagion to Europe," said Clairinvest fund manager Ion-Marc Valahu.
