A brewing political crisis in Catalonia and a mass shooting in Las Vegas, Nevada set the tone for markets on Monday. Here are five things to know in Monday’s markets.
1. Catalan Vote Rattles Markets
The euro took a hit on Monday, as markets digested the events in Catalonia over the weekend. Violence erupted during voting for a referendum deemed illegal by the Spanish Constitution. The weekend’s events were marred by violent clashes between police and voters.
Regional officials say 90% of voters were in favor of independence.
The results of the election will be passed to the Catalan parliament, in which the separatists hold the majority. It is believed that the Catalan parliament will declare independence within days.
The euro dipped 0.8% against the dollar. Investors also steered clear of Spanish stocks. The IBEX 35 fell more than 1% in mid-morning.
2. Upbeat PMIs in Asia, Europe
Upbeat PMIs in Europe and Asia pointed to factory growth ahead of the fourth quarter. In the euro zone, the IHS Markit’s final manufacturing PMI rose to 58.1 last month.
Factories across Asia also posted another month of growth in September. China led the pack, with the official manufacturing index growing at its fastest pace in five years. Factory surveys in India, Japan and other areas of emerging Asia also indicated growth.
3. Greenback, Treasury Yields Gain as Gold Holds Steady
The greenback and Treasury yields continued gains amid growing expectations that the Federal Reserve will raise interest rates in December.
The dollar index gained 0.5% to 93.45.
U.S. bond yields also rose. The yield on two-year notes rose to a nine-year high of 1.5%. The ten-year yield reached 2.37%, its highest level since July.
Meanwhile, gold held at a seven-week low, but losses may be trimmed in the wake of the mass shooting in Las Vegas Sunday evening. The tragedy may send investors flocking to safe havens, like gold.
4. Asia, Europe Post Positive Economic Data
Upbeat economic data out of Europe and Asia boosted markets. European stocks, excluding Spain, opened on a positive note.
Equities in Asia-Pacific closed broadly higher, although many markets were closed for holidays.
5. Facebook to Hand Over Ads to Congress
Facebook will hand over more than 3,000 ads to Congress which ran around the time of the presidential election and are linked to a Russian advertising agency.
Officials from the company will meet with Senate and House intelligence committees to hand over the ads.