The euro is up 0.2% against the dollar – now at its highest point in two weeks – despite of the bubbling tensions in Catalonia.
The regional leader of Catalonia noted that he would suspend the result of the independence referendum, calling on the European Union to mediate. The spat between Madrid and Catalan separationists is a stark reminder of the political risks in Europe.
The dollar is feeling a bit more lacklustre, falling from highs as doubt over Trump’s tax reform plan creeps in.
The Japanese yen is 0.24% stronger against the dollar.
European stocks are declining, thanks to increased tension on Europe’s political stage.
Madrid’s IBEX 35 is down 0.6% as sentiment in Europe turns soar. France’s CAC 40 is 0.6% lower while Germany’s DAX 30 is 0.2% weaker. The Dow Jones reached a fresh high, as stocks trade near record levels.
The bull-run in Japanese equities continues, with the Nikkei 225 reaching its highest closing level in over two decades.
More broadly, Asia Pacific stocks were mixed, with Australia’s SPI 200 making steady gains but Hong Kong dwindled downwards despite a strong start.
US traders will dissect the Federal Reserve meetings for clues on a December rate hike. Meanwhile, on the fiscal side, Donald Trump announced that he will make adjustments to the tax plan in the coming weeks.
Additionally, earnings season will kick-off for major US banks including; JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Wells Fargo & Co.
For now, most major US indices are caught in a sea of red.
Switching gears to commodities, oil prices continue to climb today, albeit at a slower pace, with Brent oil adding 0.02% and the US benchmark, crude oil edging 0.08% higher. Later today, we have crude oil inventories which will give a fresh direction to the commodity.
The demand for safe-havens continue with gold up 0.23%. The precious metal has reclaimed a lot of September’s losses as investors become increasingly cautious of North Korea’s missile programme.