Spreadex Market Update
New month, same story as commodity woes weigh on FTSE
Both its oil and mining stocks suffered following the morning’s latest example of a Chinese slowdown, as the commodities themselves tickled new lows. Brent Crude is now tentatively dipping below $51 per barrel, whilst copper is barely holding onto $2.33 per pound; of course, this created a fresh headache for stocks like BP and Rio Tinto, leaving the FTSE with little chance of growth this afternoon unless the commodity situation improves.
A manufacturing wobble from Spain (and an unsurprising all-time low from Greece) was followed by respectable, if not heart-racing, growth from France, Italy and Germany, as well as the region as a whole. This helped the Eurozone ignore the bloodbath on the Athens stock exchange; granted, it was an expected bloodbath, and one that has gradually shrank (to around 18% in losses. Which obviously isn’t great, but is an improvement nonetheless) as the day went on. Add in the 2% jump by Commerzbank following a tripling of the German bank’s net profits, and the Eurozone managed to avoid the bearish trading that has crept in elsewhere.
At the start of a week that brings with it the all-important non-farm numbers, the US futures are looking a bit sour this Monday morning, with investors jittery about the rapidly approaching potential September rate-hike. This afternoon sees another set of Fed-testing figures, with the core PCE price index (reportedly a favourite of the central bank’s) alongside personal spending data and the ISM manufacturing PMI. With the dollar opening the month strong the currency could receive another boost if these figures perform better than the slightly tepid growth that analysts are expecting.
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