Spreadex Market Update
Chinese slowdown hits commodities, whilst HSBC sees 10% jump in pre-tax profits
Of course, this had a knock on effect for the FTSE, which looked a bit lifeless after the bell, hovering around 6700 but without showing much intention either up or down. A strong manufacturing figure later this morning could help put some juice in the UK index’s tank; however, the number has underperformed expectations for the last 4 months in a row, and following the disappointing manufacturing growth hidden in last week’s GDP report the FTSE may be left wanting.
Perhaps saving the FTSE from further losses this morning was HSBC, which continued the relatively impressive earnings season for the UK banking sector by posting a 10% increase in half year pre-tax profits to £8.7 billion. Combine this with the announced sale of its Brazilian Banco Bradesco unit, in an attempt to rid the bank of dead wood, and investors pushed HSBC over 1% higher after the bell. Those gains could have been higher, however, if the bank had provided a firmer answer on the question of its headquarter-relocation, merely stating the decision will be made before the end of the year.
Like the FTSE the DAX and CAC failed to gain much momentum in the early hours of Monday’s trading, with little impetus for investors to push the indices any higher. A weaker than expected Spanish manufacturing PMI didn’t get the morning off to a good start, with a swathe of manufacturing figures from across the region still to come. This biggest thing of note for the Eurozone, however, will be the re-opening of the Athens stock exchange after 5-weeks of shutdown. Rather understandably there is to be no happy reunion between traders and stock exchange, with a 30% drop on the cards as investors try and flee the toxic trading region.
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