Market Snapshot – Yields Rise as Catalonia Dominates Headlines

Yields and Praet Dominate the Day So Far

The yields have risen and the stock markets in Europe have taken a bit of a dive as the events of Catalonia and the comments from ECB’s Praet have dominated the markets since the beginning of the day. It was expected to be a low and slow day as it is the first day of the week and we are seeing many traders returning to their desks after the weekend and it has been proving right so far. The euro has weakened and now threatens to make new lows as of this writing and even more weakness seems to be in store for the euro. The Catalonia crisis continues to dominate the markets as the move of the former President over there to Belgium has managed to escalate this into a bigger conflict than the one pertaining just to Catalonia.

Dearth Of Economic News This Week

As for the rest of the week are concerned, there is not much economic news to dominate the headlines this week but we have speeches from Yellen and Draghi during the course of the week. We also have Trump making his tour of Asia and visiting Japan would be a part of his tour and it is likely that he will talk a lot about North Korea during the coming days. This is likely to keep the market tense and uncertain and this would then favor gold for the short term. In addition, the recent developments in Saudi Arabia can spark geopolitical concerns and oil prices.