World Economy

Global Stocks Up Amid Upbeat Data

Global Stocks Up Amid Upbeat DataGlobal Stocks Up Amid Upbeat Data

Solid manufacturing surveys helped support share prices in Europe and Asia on Monday. However, Spanish stocks and the euro underperformed amid concerns over what is going on in the Spanish region of Catalonia following a disputed independence referendum over the weekend that saw hundreds of people injured.

In Europe, Germany›s DAX advanced 0.2% to 12,856 while the CAC 40 of France rose 0.1% to 5,336. The FTSE 100 of Britain added 0.5% to 7,410. Wall Street looked set for modest gains at the bell, with Dow futures and the broader S&P 500 futures up 0.2%, AP reported.

Spain›s Ibex 35 fell 1.3% while the euro was 0.7% lower at $1.1733 as investors tried to gauge what the weekend unrest in Catalonia means for the future of the Spanish state and European unity.

The future of Catalonia is hugely important for Spain, as the region, whose capital is Barcelona, represents a fifth of the national economy. Polls consistently show that while most of its 7.5 million residents favored a referendum, they are roughly evenly split on the question of independence from Spain.

The uncertainty over Spain comes at a time when the eurozone economy is clearly performing strongly. Official figures released Monday show that the number of unemployed people fell by 42,000 across the region in August, though the headline rate remained at 9.1%, its lowest level since early 2009. And financial information company IHS Markit said that business activity in the manufacturing sector rose to a level that›s only been higher once in the 17-year history of the survey. Its main purchasing managers› index rose to 58.1 points in September from August›s 57.4.

The Bank of Japan›s quarterly «tankan» survey showed an improved outlook for the world›s third-largest economy. The survey of leading manufacturers indicated growing shortages of factory capacity that could compel companies to invest more, helping to drive growth.

Markets in China, Hong Kong, India and South Korea were closed Monday for national holidays. Japan›s Nikkei 225 stock index rose 0.2% to 20,400.78 and the S&P ASX/200 jumped 0.8% to 5,729.30. Shares in Taiwan and Southeast Asia also gained.

Benchmark US crude fell $1.12 to $50.55 a barrel while Brent crude, the standard for international oil prices, shed $1.01 to $55.78 a barrel.

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