Madrid Stocks Stage Modest Rebound amid Catalan Crisis
The Madrid stock market rebounded somewhat on Thursday as investor concerns eased over the Catalan independence crisis.
The Spanish capital's benchmark IBEX 35 shares index jumped 1.5 percent in afternoon deals, but failed to offset the previous day's 3.0-percent slump.
Trade was more muted elsewhere in Europe, with Frankfurt receding, Paris flat, and London climbing into positive territory.
The euro meanwhile slid towards $1.17 -- having topped $1.20 just two weeks ago -- as Spain's Catalonia crisis drags on.
"The IBEX 35 has bounced back after suffering heavy losses," said CMC Markets UK analyst David Madden.
"The stand-off between Catalonia and Madrid is still ongoing, so today's positive move should not be viewed as a sign that the relations are improving."
- Warning over direct rule -
Madden added: "Madrid has warned Catalonia that direct rule may be imposed, and such a move is likely to stoke tensions even further."
The European Union urged dialogue to ease the standoff between separatists in the northeastern region and Madrid, but a regional government source said an independence declaration could come as early as Monday.
That follows the weekend's unofficial vote on breaking away, which has fanned uncertainty in one of the bloc's biggest economies.
The tone of the crisis sharpened with Catalonia's president denouncing the king's intervention and Spain's government rejecting any possible talks.
Shares in Catalonia-based banks have been hit particularly hard in recent days, and Sabadell, Spain's fifth-biggest lender, said it will discuss Thursday whether to shift its registered headquarters out Catalonia due to leaders' threats to declare independence.
Sabadell's shares shot up 3.5 percent. Shares in Caixabank, another bank based in Catalonia, gained nearly 3.0 percent.
Asian equities firmed in muted trade Thursday, tracking a third-straight record close on Wall Street on Wednesday on more positive U.S. data.
With the U.S. services sector hitting a 12-year high in September and manufacturing activity striking a six-year high, expectations swelled for Friday's key payrolls release.
U.S. stocks opened further into record territory on Thursday, with the Dow edging a handful of points higher, after data showed initial claims for jobless benefits fell last week by a greater amount than analysts had been expecting to 260,000.
The positive data is feeding expectation the U.S. Federal Reserve will announce a third 2017 interest rate hike before the end of the year.
- Key figures around 1330 GMT -
Madrid - IBEX 35: UP 1.5 percent at 10,117.80 points
London - FTSE 100: UP 0.4 percent at 7,496.80
Frankfurt - DAX 30: DOWN 0.2 percent at 12,948.03
Paris - CAC 40: UP 0.03 percent at 5,364.92
EURO STOXX 50: DOWN 0.08 percent at 3,3190.33
New York - DOW: UP 0.02 percent at 22,666.89
Tokyo - Nikkei 225: FLAT at 20,628.56 (close)
Sydney - S&P/ASX 200: FLAT at 5,651.80 (close)
Hong Kong - Hang Seng: Closed for a public holiday
Shanghai - Composite: Closed for a public holiday
Euro/dollar: DOWN at $1.1720 from $1.1761 at 2100 GMT Wednesday
Dollar/yen: DOWN at 112.56 yen from 112.72 yen
Pound/dollar: DOWN at $1.3135 from $1.3250
Oil - Brent North Sea: UP 66 cents at $56.46 per barrel
Oil - West Texas Intermediate: UP 20 cents at $50.18
Source: Agence France Presse
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