SABC News - Euro jolted briefly by Spanish vote:Monday 2 October 2017

Euro jolted briefly by Spanish vote

Monday 2 October 2017 07:21

REUTERS

The euro fell around a third of a US cent after the violence-marred vote to as low as $1.1776 in early Asian trade but soon steadied at $1.1800.(SABC)

The euro took a brief knock in Asia on Monday as investors kept an anxious eye on an independence vote in Spain's Catalonia, although surprisingly strong economic news out of China and Japan offered support to equities and commodities.

The euro fell around a third of a US cent after the violence-marred vote to as low as $1.1776 in early Asian trade but soon steadied at $1.1800.

Liquidity was very thin with Chinese and Sydney markets on holiday.

Spanish police used batons and rubber bullets to thwart an independence vote in Catalonia on Sunday in a show of force that left hundreds injured, according to Catalan officials, and presented Madrid with a huge challenge to calm tensions in the region.

The situation was fluid, with the head of the regional government opening the door to a potential declaration of independence from Spain.

Dealers emphasised there had been no real selling of euros as yet and neither was there any flow to safe havens, with investors reserving judgement.

As a result, the dollar was firmer on the Japanese yen at112.64 and up a shade against a basket of currencies at 93.182. Gold was quiet at $1,277.00.

Asian shares were in for a better day after upbeat economic data from China, Japan and South Korea augured well for a sustained pickup in global growth.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.24 % while E-Mini futures for the S&P 500 rose 0.14%.
Australia's main index jumped 1.1%, while Japan's Nikkei inched up 0.1% after a survey of manufacturers produced the strongest sentiment reading since2007.

China's manufacturing activity grew at the fastest pace since 2012 in September as factories cranked up output to take advantage of strong demand and high prices.

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