Euro falls on Catalonia, ‘sharks circle’ Bitcoin

The euro fell against both the dollar and sterling, and the implied borrowing costs for the Spanish government rose amid fears of a standoff over Catalan independence following the regional vote, writes Eamon Quinn.

The euro fell against both the dollar and sterling, and the implied borrowing costs for the Spanish government rose amid fears of a standoff over Catalan independence following the regional vote, writes Eamon Quinn.

Meanwhile, the price of the Bitcoin plummeted as “the sharks circled” the cryptocurrency, a trader said.

Irish shares were little changed as the Iseq overall index of leading shares headed for gains this year of 7.5%, outperforming the FTSE 100 index’s advance of 6.3% but lagging fellow eurozone stock markets.

The Cac-40 in Paris has climbed 10.25% this year and Frankfurt’s Dax has surged 13.4%.

The euro fell 0.3% to $$1.1835 and to 88.5 pence after Catalan separatists performed strongly in the regional election, prompting worries about the possible break-up of the eurozone’s fourth-largest economy.

Bitcoin’s plunge extended to almost 30% as the frenzy surrounding digital currencies faced one of its biggest tests yet.

The world’s largest cryptocurrency approached $10,000 as this week’s selloff entered a fourth day with increasing momentum. It had touched a record high $19,511 at the start of the week. For the week, the decline is as much as 39%. That follows gains of 13%, 44%, and 32% in the prior three weeks.

The losses represent a major test for the cryptocurrency industry and the blockchain technology that underpins it, which have rapidly entered the mainstream in recent weeks.

Bears cast doubt on the value of the virtual assets, with UBS this week calling bitcoin the “biggest speculative bubble in history”.

“The sharks are beginning to circle here, and the futures markets may give them a venue to strike,” said Ross Norman at London-based bullion dealer Sharps Pixley.

In the US, the S&P consumer discretionary index was dragged down by Nike. The sportswear firm’s shares fell 3% after it had forecast muted current-quarter revenue growth, highlighting its struggles to regain market share in North America from rival Adidas. Adidas shares were little changed.

Of the leading shares in Ireland, shares in food giant Kerry were heading for an advance of 38% this year. The firm is valued at €16.4bn.

AIB shares were heading to post a gain of over 14.3%, which values the lender at €15.1bn.

Rival Bank of Ireland shares have fallen 1.4% this year, valuing it at €7.75bn.

CRH shares were heading into the end of the year with a decline of over 4%, valuing the building products giant at €25.1bn.

Paddy Power Betfair shares fell 2.5% this year, valuing the bookie at €7.75bn. At 20%, one of the largest falls this year has been by foods firm Aryzta. It is now valued at €2.9bn.