US markets positive as Trump signed tax bill

The week ended with the euro slipping against the dollar on Friday after Catalan separatists won a regional election, stoking concerns about the possible break-up of the euro zone’s fourth-largest economy.

Spain’s government had hoped that the Catalan election would strip pro-independence parties of their control of the regional parliament and end their campaign to force a split. But with 96 percent of ballots counted in a vote to elect Catalonia’s regional parliament, separatist parties are seen winning 70 seats out of 135.

Analysts said trading volumes were being thinned by the Christmas holiday, which could cause some volatility.

As Catalan separatist parties triumphed in regional elections there was a of reigniting Spain’s political trauma and focus was diverted from data on consumer spending, wholesale prices and gross domestic product from France and the Netherlands which underscored the region’s health.

The Stoxx Europe 600 Index slipped with Spain’s Ibex 35 leading the declines. The country’s bonds also fell along with peripheral European government debt before recovering, while bunds were little changed after a selloff this week drove yields to five-week highs.

Equities in Asia ended largely in the green, with Japan’s Topix Index reaching its highest level since 1991.

The Dow Jones industrial average and the S&P 500 posted gains for the fifth straight week on Friday after President Donald Trump signed a bill that revamps the U.S. tax code. The Dow climbed 0.4 percent this week, while S&P 500 gained 0.3 percent. The tech-heavy Nasdaq composite index notched a two-week winning streak.

Trump signed a bill on Friday that slashes the corporate tax rate to 21 percent from 35 percent. The president was able to sign the bill after Congress approved another bill to keep the federal government funded through January 19.

West Texas Intermediate crude fell 0.1 percent to $58.31 a barrel. Gold gained 0.6 percent to $1,274.23 an ounce, the highest in more than two weeks.