Wednesday, October 11: Wednesday saw a fairly sombre day for the FTSE, which didn’t move far from its base for the majority of the session. A lack of meaningful macro data, doused in background political tensions and currency headwinds lending to an uninspired investment atmosphere. Even Japan’s Nikkei closing at 21 year highs and the KOSPI closing near record highs couldn’t lend momentum for Europe.
Last night we did have some progress in Spain (well, sort of). The president of Catalonia Carles Puigdemont has stepped away from an immediate declaration of independence from Spain. He does however maintain that the region has won the right to independence as a result from the October 1 vote. He’s basically looking to end the relationship on good terms, be friends and engage in civil dialogue which does at least let Spain breathe a sigh of relief and cool tensions for now. As for now there’s been no evidence that Spain look happy to honour what is still technically an illegal vote.
Catalonia: ‘’we’re leaving now’’
Catalonia: ‘’excuse me? Do you mind just passing me my coat I’m off’’
With this momentary pressure off, the IBEX managed to regain some ground today (+0.5%), with many investors seeing dialogue as a one-way ticket to well, absolutely nothing changing at all. But if we have learned anything it is Catalonia aren’t just going to forget about this. They’re as persistent as an Apple software update (which we would not like to do now because we don’t have enough storage space!). As for what happens next… what do you call a deer with no eyes?
Over on colder, windier, less footballing talented shores, the FTSE as we said stayed put for most of the session to eventually close 0.06% lower; as exciting as England at Wembley. Mondi was the main laggard on the FTSE 100, falling 7.8% on the day after a profit warning. Smurfit and DS Smith shares became contingent casualties from the paper and packaging manufacturer’s update. The US open equally mixed but again uneventful, with investors likely to try and make something of the Fed minutes that will be released soon. Apart from that the BBC reported that farm incomes may half, accompanied it with the picture of cows. I couldn’t help but think cows calf should’ve been worked in but I do accept, there are more pressing issues in the world.