Overview
Investors are ignoring the events in Catalonia, with global equities trading upwards. The Spanish region has voted for independence, sending a wave of uncertainty through Spanish stocks. Spain’s IBEX 35 is down 1.1% in the wake of the referendum.
The euro is 0.5% lower after the weekend’s vote, its lowest point in more than six weeks. The single currency was one of the biggest under performers of among major currencies after the contentious relations unravelled. Tensions heightened after Madrid’s government refused to acknowledge the poll, igniting violent collisions between national police and Catalans.
Despite the political uncertainties in Spain, European stocks are moving upwards. France’s CAC 40 is 0.4% higher while Germany’s DAX 30 has added 0.2% to its value. The UK’s FTSE 100 is enjoying the weaker pound, up 0.5% this morning, its highest point in three weeks.
Meanwhile, the dollar climbed 0.5%, its highest point in almost eleven weeks. The greenback was supported by a weaker euro and expectations of a reform of the US tax code.
The Japanese yen is 0.3% weaker against the dollar after the Tankan Non-Manufacturing Index came in at 23, missing the forecast of 24. The Aussie dollar gave up 0.1% against its US counterpart.
Sterling fell 0.7%, hitting its lowest level in close to three weeks. The pound suffered its largest drop in over three weeks against the dollar.
Commodities
Crude oil hit its lowest level in almost a week, declining 0.4%, as concerns over the Kurdish independence referendum heightened. Brent oil, the international benchmark, lowered 0.4% as investors shed bullish bets.
Gold is tantalisingly close to a seven-week low, falling 0.5%. The precious metal is now well below the psychological level of $1300, at $1274.
