Market Wrap: Spanish markets dip. Austria’s far right wins major victory.

by | Oct 16, 2017

CATALONIAN INDEPENDENCE CONFUSES INVESTORS. AUSTRIA PUTS ITS FAITH IN A 31 YEAR OLD LEADER. IRAQI/KURD TENSIONS DRIVE UP OIL PRICES.

European stock markets looked healthy this morning except for those in Spain, which fell slightly at the open, lagging behind their peers after fresh confusion about the state of Catalonian independence. What independence backers hoped for (a swift break from Spain) has morphed into a more drawn out and complex affair. 

Catalan leader and figurehead Carles Puigdemont allegedly failed to clarify whether he has declared the region independent or not in a letter to the government in Madrid. Instead he has supposedly called for further negotiations over the next 2 months. Catalonia voted for independence in a poll on October 1st (pictured), but it was declared illegal by Spain’s Constitutional court.

Higher up continent the European Union will be gritting its teeth today, after a new nationalist party in Austria led by a 31 year old named Sebastian Kurz secured its best result in a national election for 20 years. The eurosceptic Freedom Party is one of the many new populist parties springing up in response to the EU’s failed migration policies and political overreach. The centre-left Social Democratic Party saw its worst results for decades. After victories for Emmanuel Macron against his opponent Marine Le Pen earlier this year, as well as a loss for Geert Wilders in the Netherlands and the AfD in Germany, the influence of the EU’s critics seemed muted. However, one should take note that the fact these parties are performing so well compared to the past is a major step forward for them and a significant loss for the European Union. The right have moved from the fringes into the mainstream, thanks to the EU’s easily penetrable borders and unaccountable bureaucracy.


Elsewhere oil prices are up again due to conflict in Iraq between Kurdish forces and the Iraqi army, as the latter advanced towards the city of Kirkuk, an oil-rich area. Predictions of a lower supply of oil due to a major Kurdish pipeline being cut off and new sanctions on Iran from the US has sent up the prices, for the moment. 

In Asian markets today – a nice breakout for the TOPIX and NIFTY50 (the latter staying firmly above 10,230 points at the close but below its peak off 10,240 this morning in India). That represents a seriously impressive rally over the last week which you can see here.

China is likely to be in the spotlight this week as the National Communist Party Conference kicks off on October 18th, but for the time being new data was released today which showed China’s consumer price index rose 1.6% in September, meeting expectations. This is good news for the economy.

In currencies today the Euro trades lower against both the Pound and Dollar, while Bitcoin sits just above the $5500 mark, falling backwards from its incredible rally last week.

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ALL RIGHTS RESERVED © INVSTR LTD. 2017

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. Brokerage services, including fractional trading of US securities, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here. Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

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