And finally…. European stock markets mostly ended the day higher, although Spain was dragged down by worries over how Catalonia’s push for independence may develop.
In London, the FTSE 100 closed 66 points higher at 7,438, a rise of 0.9%. Germany’s DAX gained 0.6% and France’s CAC rose by 0.4%.
But Spain’s IBEX had a bad day, losing 1.2% following Sunday’s violent clashes over the disputed Catalan referendum.
David Madden of CMC Markets explains:
The Spanish stock market is suffering after the violent images and footage that were broadcasted around the world yesterday of the Catalonian independence referendum. The use of force by police officers shocked viewers around the globe, and the heightened tensions in the region have prompted investors to cash in their positions.
Opinion polls in advance of the referendum suggested that the pro-independence side were in a minority, but I suspect Madrid’s actions will drive up calls for independence. The political uncertainty is weighing on their stock market, and until the situation is solved, traders will be wary.
And that’s all for today. Thanks for reading and commenting. GW
Dennis de Jong, managing director at UFX.com, reckons the tensions gripping Britain’s Conservative Party have helped to drag the pound down today.
“It has not been a Monday to remember for the pound, and the remainder of the week poses further challenges to the UK currency.
“This morning’s underwhelming manufacturing PMI reading could well spur a sell off, while Theresa May’s premiership is coming under increasing scrutiny, and that’s likely to leave the pound losing further ground.
That scrutiny has been fuelled by foreign secretary Boris Johnson, with a series of interviews and speeches in recent days that have challenged May over Brexit.
Yesterday, the PM was even asked whether Johnson was ‘unsackable’, following claims that he was actually trying to get the boot — either to bolster support for a future leadership challenge, or simply because he’s struggling to make ends meet on his ministerial salary (a mere £140,000….).