Catalan vote – investors are nervous

Tensions in Spain have been rising since the declaration of independence from Spain. President of Catalan confirmed his right to declare independence from Spain on Sunday after getting support votes for more than 90% while the Spanish government has ordered police to stop the voting process in Catalonia, saying it's illegal. As the result, nearly 350 people included some polices were injured in the unrests.
In my opinion, Euro and stock markets in Europe may get some negative effects so euro may drop lower and some markets of European countries may move flatly or bearish trend till the tension will ease. It also may affect to hotels, tourism and leisure industry in Spain. London stock exchange can also fall because of the EU and the lower forecast of construction PMI at 15.30 today. If UK construction PMI is lower than 50.8, it may be negative for GBP.
Asian market opened higher as business confidence improved among manufacturer’s boosted stocks. Thai stock market stayed in green zone followed major markets in Asia by energy and bank stocks. I think LTF may help SET rise close to 1700 points ending of the year. Gold price may slightly drop these days by the steady U.S. dollar, if North Korea will not detract. I suggest to focus on Australia’s interest rate decision in the morning today at 10.30 because it may help Australian dollar keep its strength.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

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