Spreadex Market Update
Curse of the Quiet Afternoon hits already sliding markets
With the NASDAQ closing above 5000 for the first time in 15 years last night, and both the Dow Jones and the S&P reaching record highs, things were looking good for the US markets. Yet there were signs the markets were going to give up these gains this morning, as US futures followed the dismal lead of their European peers. This warning came true after the bell and with no significant data to keep the flame alive, investors had little impetus to push the US markets any higher, succumbing to the same dour trading spirit that plagued Europe this morning. However there is still hope: as was seen at the tail end of 2014, the US markets have a habit of recovering the losses they incur during their trading overlap with Europe once the indices on the continent close for the day.
Despite Brent Crude rebounding back to $61 per barrel, typically a boost for the FTSE, the UK index suffered significant losses on Tuesday afternoon as the negative trading that infected it late this morning only increased its presence. The obvious dud of the day was Barclays, which failed to stall its losses in the face of karmic-market retribution after the extent of its precautionary forex-fine-fund was revealed.
A more surprisingly member of the loser’s bench was Moneysupermarket.com Group. Even though the company announced that it doubled its statutory post-tax profits, the warning that its second quarter will be more difficult than initially anticipated was the comment that chimed with investors, as the comparative company posted over 8% in losses by this afternoon.
You wouldn’t think that the Eurozone had just seen years-high economic data alongside the prospect of an impending, and extensive, QE program if you looked at its performance this afternoon. After the DAX appeared to be on the road to fresh highs in the early hours of trading, doubt began to creep in over the usual issue: Greece. Corroborated reports that a Eurozone collapse is at its most likely for nearly 3 years left the region’s indices looking decidedly peak as the closing bell approached.
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