Catalan Separatist Victory Pressures European Stocks
What next for Catalonia?
It’s the last day of trading before the Christmas break, which should mean low volatility, but Spanish stock markets are anything but calm and have taken a major hit this morning, thanks to a win for pro-independence parties in the Catalonian election held yesterday.
Separatist groups won 70 out of 135 seats in the Parliament of Barcelona, in a major humiliation for the Prime Minister Mariano Rajoy, whose odds of being victorious seemed to be assured by pollsters. However, his party (the ‘People’s Party’) ended up only winning 3 seats. Figures show the turnout for the vote was 80%.
Indices tracking Spanish stocks including the FTSE Spain Index and BATS Spain 35 fell by over 1% each after markets opened, while the picture for broader European markets also looks weaker – see the chart (blue and red lines indicate the FTSE Spain and BATS Spain 35).
The outcome of the vote will deepen Spain’s political crisis further, as questions remain over what moves independence parties will make next. For now, the election has provided a major boost to separatists who will feel emboldened by the outcome.
Though separation from Spain may be good in their eyes, it may deter foreign investment further. Official data shows foreign direct investment in Catalonia fell by 75% in the third quarter from a year earlier, dragging down the rest of the country too.
Today we are watching: #spainx #eurusd #eurgbp #bats-es35
Markets Elsewhere
Wall Street was seemingly unphased by the goings on in Europe today, with US futures pointing to a higher open ahead a ton of data which is due later on.
At 8:30 a.m EST, reports on durable goods orders, core capital orders, personal income, consumer spending and core inflation for November will be released. New-home sales figures for that month and a consumer sentiment reading for December are also due at 10 a.m EST.
At 5:30AM EST, Dow futures rose by 25 points, or 0.10%, S&P500 futures gained 3 points, or 0.09%, while Nasdaq futures inched up 6 points, or 0.09%.
In earnings, Nike shares moved higher in pre-market trading after the company released a positive earnings report.
Bank shares were some of the most successful stocks on US indices yesterday. Goldman Sachs and Wells Fargo gained over 2% each while JPMorgan Chase, Citi and Bank of America picked up over 1%.
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ALL RIGHTS RESERVED © INVSTR LTD. 2018
Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions.
DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.
There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees
The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees
This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”
A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure