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Spanish stocks extend gains as Catalan crisis fades

Spanish stocks extend gains as Catalan crisis fadesLONDON: The Madrid stock market rallied Tuesday on the fading prospect of Catalan independence, helping other European bourses higher, dealers said.

At the close, the Spanish capital’s benchmark IBEX 35 index was up by 0.7 percent, off earlier highs, having fizzed 2.44-percent higher the previous day.

London and Paris stock markets each posted smaller gains, thanks to strong corporate results, while Frankfurt was closed for a German public holiday.

“Spanish stocks have enjoyed another leg higher today, with the IBEX 35 hitting its highest level since August as the Catalan independence push has seemingly lost its way,” said analyst David Cheetham at trading firm XTB.

“After declaring independence on Friday, the former regional leaders have experienced a backlash with large protests against secession seen in Barcelona over the weekend and the imposition of direct rule from Madrid yesterday.”

Wall Street was a touch firmer approaching midday in New York, in a slight recovery from Monday’s losses.

Back in London, chemicals group Croda International’s shares rose sharply on upbeat third-quarter earnings.

Similarly, BP stock also jumped after the energy major logged a modest increase in third-quarter net profits, anchored by recovering oil prices.

In Paris, the top winner was top European planemaker Airbus. Stocks soared nearly four percent after the aerospace giant logged rising third-quarter net profit and revenues.

Airbus warned however that investigations into fraud, bribery and corruption by the French and British authorities could impact earnings.

Ryanair shares jumped over seven percent as the Irish airline stuck to a full-year profits forecast despite cancelling thousands of flights on a pilot shortage.

Investors are braced for a busy rest of the week in the US, with President Donald Trump expected to say whether he will replace Federal Reserve chief Janet Yellen. The announcement is likely by Friday before he embarks on an Asian tour.

Traders are also keeping a close eye on the release of the October jobs report on Friday.

News of the first indictments over the FBI investigation into Russia’s interference in the 2016 US presidential election have also sparked caution among investors.

Copyright AFP (Agence France-Press), 2017

Source: Brecorder.com

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