Madrid stocks stage modest rebound amid Catalan crisis

 05 Oct 2017 - 14:16

Madrid stocks stage modest rebound amid Catalan crisis

AFP

London: The Madrid stock market rebounded somewhat on Thursday as investor concerns eased over the Catalan independence crisis.

The Spanish capital's benchmark IBEX 35 shares index jumped 1.0 percent in late morning deals, but failed to reverse the previous day's 3.0-percent slump.

Trade was more muted elsewhere in Europe, with Frankfurt and Paris receding but London edging into positive territory.

The euro meanwhile struggled in the mid-$1.17 range -- having topped $1.20 just two weeks ago -- as Spain's Catalonia crisis drags on.

"The IBEX 35 has bounced back after suffering heavy losses," said CMC Markets UK analyst David Madden.

"The stand-off between Catalonia and Madrid is still ongoing, so today's positive move should not be viewed as a sign that the relations are improving."

Shares in Catalonia-based banks have been hit particularly hard in recent days, and Sabadell, Spain's fifth-biggest lender, said it will discuss Thursday whether to shift its registered headquarters out Catalonia due to leaders' threats to declare independence.

Warning over direct rule

Madden added: "Madrid has warned Catalonia that direct rule may be imposed, and such a move is likely to stoke tensions even further."

The European Union urged dialogue to ease the standoff between separatists in the northeastern region and Madrid, but a regional government source said an independence declaration could come as early as Monday.

That follows the weekend's unofficial vote on breaking away, which has fanned uncertainty in one of the bloc's biggest economies.

The tone of the crisis sharpened with Catalonia's president denouncing the king's intervention and Spain's government rejecting any possible talks.

Asian equities firmed in muted trade Thursday, while the dollar held gains after a third-straight record close on Wall Street and more positive US data.

With attention now on the release of US jobs figures on Friday and investors trying to figure out Donald Trump's pick as the next Federal Reserve boss, there was little to drive action on a holiday-thinned day.

All three main indices in New York closed higher after a healthy private jobs report that raised hopes for Friday's key payrolls release.

The news came after the Institute for Supply Management said growth in the US services sector hit a 12-year high in September and manufacturing activity hit a six-year high.

The data fuelled expectations the Fed will announce a third 2017 interest rate hike before the end of the year.

Hong Kong, Shanghai and Seoul were closed for public holidays.

- Key figures around 1045 GMT - 

Madrid - IBEX 35: UP 1.0 percent at 10,065 points

London - FTSE 100: UP 0.2 percent at 7,482.42

Frankfurt - DAX 30: DOWN 0.2 percent at 12,942.58

Paris - CAC 40: DOWN 0.1 percent at 5,359.57

EURO STOXX 50: FLAT at 3,595.30

Tokyo - Nikkei 225: FLAT at 20,628.56 (close)

Sydney - S&P/ASX 200: FLAT at 5,651.80 (close)

Hong Kong - Hang Seng: Closed for a public holiday

Shanghai - Composite: Closed for a public holiday

New York - DOW: UP 0.1 percent at 22,661.64 (close)

Euro/dollar: UP at $1.1767 from $1.1761 at 2100 GMT Wednesday

Dollar/yen: DOWN at 112.64 yen from 112.72 yen

Pound/dollar: DOWN at $1.3187 from $1.3250

Oil - Brent North Sea: UP 40 cents at $56.20 per barrel

Oil - West Texas Intermediate: UP 13 cents at $50.11