Europe positive as euro weakens

On Wednesday, the euro headed for its longest losing streak in almost a year as a deadline on Catalonia’s independence looms. Stocks in Europe advanced, while the dollar continued to strengthen helped by speculation that the next Federal Reserve chair will be more hawkish.

The Stoxx Europe 600 Index rose led by technology shares, following mixed trading in Asia earlier. Spanish stocks fell. The euro weakened for a fifth day on speculation the European Central Bank will remain accommodative even as it tapers asset purchases. The greenback advanced as volatility in major currencies fell to a three-month low, while Treasury yields rose. The pound extended a decline amid more headwinds for Brexit negotiations. Oil continued to gain as signs of declining U.S. stockpiles pointed to healthy demand.

Catalonia has until Thursday to back down from its secession push. Investors were reminded of the economic cost of the crisis when Spain, the euro-region’s fourthbiggest economy, cut its growth forecasts for next year. The Catalan standoff is one of several political risks facing investors in Europe, including high-stakes coalition talks that began Wednesday in Germany between Angela Merkel’s Christian Democrats and potential partners to lead Europe’s biggest economy.

The Stoxx Europe 600 Index gained 0.2 percent as of 10:54 a.m. London time. The U.K.’s FTSE 100 Index jumped 0.2 percent. Germany’s DAX Index advanced 0.3 percent to the highest on record. Futures on the S&P 500 Index increased 0.1 percent.

Japan’s Topix index closed less than 0.1 percent higher in Tokyo. Australia’s S&P/ASX 500 Index ended flat, while South Korea’s Kospi index was also little changed. Hong Kong’s Hang Seng Index inched lower, while the Shanghai Composite Index was up 0.1 percent. The MSCI Asia Pacific Index was little changed as was the MSCI Emerging Market Index after dropping 0.5 percent in the previous session.