Spreadex Market Update

Chinese equities led Asian markets



Chinese equities led Asian markets lower overnight as growth in the services sector hindered financials. European futures are seen falling on Wednesday contributing to yesterday’s losses after downbeat Chinese data and on worries over mounting tension in Egypt. Egypt’s Mohammed Morsi has insisted he remains the county’s president despite mass protests which has already claimed 16 lives. If the turmoil continues today we could see the army stepping in to take control.

Political turmoil in Egypt and shrinking US stockpiles sent Crude oil rallying above $100 a barrel for the first time in nine months. Crude surged 2.1% to $101.62 a barrel in Tokyo overnight.

ADP non-farm employment change is forecasted to come in better than the previous month whilst unemployment claims has been brought forward a day due to the Independence Day holiday in the US tomorrow. With a report earlier this week showing the manufacturing sector lost jobs for the first time since 2009, investors will focus on the ISM non-manufacturing PMI to see if the service sector suffered the same fate. Despite this, analysts are forecasting a higher figure than last month.

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