LONDON (Reuters) - European shares dipped on Wednesday despite a new set of record highs overnight on Wall Street, with Spanish and banking stocks suffering from the on-going Catalonia crisis, while Germany's DAX was catching up after a bank holiday, boosted by strong auto stocks.


The pan-European STOXX 600 <.STOXX> index was down 0.1 percent by 0735 GMT while Spain's IBEX <.IBEX> fell 0.9 percent as banking stocks, the most sensitive to political risks, tumbled.


Catalonia-headquartered Banco Sabadell <SABE.MC> led the IBEX lower, down 2 percent, closely followed by Bankia <BKIA.MC>, Bankinter <BKT.MC>, Santander <SAN.MC> and BBVA <BBVA.MC>.


Spanish banks weighed on the euro zone banking index <.SX7E> down 1.2 percent and set for its worst fall in two weeks with all stocks in the red.


King Felipe VI accused secessionist leaders of shattering democratic principles in a rare televised speech which, in itself, is a sign of the seriousness of the crisis, analysts said.

Energy stocks <.SXEP>, down 0.4 percent, also weighed as crude prices slipped.

Buoyed by strong data in the United States, car makers boosted Germany's DAX <.GDAX>, up 0.4 percent, with Volkswagen <VOWG_p.DE> rising 2.2 percent and Daimler <DAIGn.DE> rising 1.5 percent.

(Julien Ponthus, Editing by Helen Reid)