October is off to a busy start for trading in the wake of a number of big events over the weekend.
Despite heavy-handed and ultimately counterproductive interference from Spain's federal government, the Catalonia independence vote was held on Sunday. Of the ballots that were not blocked or confiscated, 90% were in favour of independence. This news has pushed the IBEX down 1.3% to start the week and sent the euro down relative to the U.S. dollar.
Sentiment toward the U.S. has been more positive to start the week, with the dollar up against most majors, and index futures up 0.2%, sending SPX to an all-time high. Traders appear to be responding well to speculation on a news Fed Chair and tax reform. Key data reports today include manufacturing PMI and construction spending, with employment later in the week.
That being said, U.S. casino stocks could come under pressure today following last night's tragic shooting in Las Vegas. A gunman opened fire on a music festival from a window in the Mandalay Bay casino killing more than 50 people and injuring over 200 people. This tragedy could potentially have a big impact on a city and sector heavily dependent on tourists and public events.
It's unclear what impact Saturday's terrorist attack in Edmonton has had on the Canadian dollar, which has moved through $0.8000 / $1.2500 against the greenback today. WTI crude falling 1.3% certainly isn't helping. Positive China PMI reports had helped Australia to a 0.8% gain.
The rumoured merger between Metro (TO:MRU) and Jean Coutu (TO:PJCa) was finalized over the weekend, sparked by a need to compete against Amazon.com (NASDAQ:AMZN) and the Loblaws-Shoppers combination. Metro has agreed to pay $4.5B or $24.50 per Jean-Coutu share in a cash and stock friendly deal.