Spain's Prime Minister Mariano Rajoy discusses the removal of the Catalan government during a press conference at the Moncloa Palace in Madrid, on October 21, 2017. Photo: Reuters / Juan Medina

After a false hope of easing tensions in Spain on Thursday, which saw the benchmark IBEX jump over 2.0% before pairing gains, everything unraveled quickly on Friday.

In a ballot boycotted by opposition members of the Catalan regional parliament, lawmakers voted 70-10 to declare the autonomous region’s full independence from Spain, as BBC reported. The move followed reports yesterday that Catalan leader Carles Puigdemont would call for snap electons in a bid to deescalate tensions. The announcment was canceled late Thursday.

As was widely expected, Spanish Prime Ministery Mariano Rajoy called today on lawmakers in Madrid to approve direct rule over Catalonia.

Spain’s benchmark IBEX index is fast erasing the gains made yesterday, down as much as 1.8% Friday morning.