Spreadex Market Update

Markets pause after New Year rally



The markets have taken a pause for breath after the rally to kick start the new year yesterday driven by better-than-expected US manufacturing data and traders will be poised to take advantage of the next significant news flow.

An oversubscribed German debt sale or further positive economic data from the US this afternoon in the form of factory orders may provide additional impetus for the new year optimism.

The details of Bernanke’s open communication strategy unveiled yesterday is yet to boost the markets as there is some criticism to its impact on investor confidence.


The plan is to clearly delay expectations of interest rate rises although the full disclosure of rate forecasts may highlight any rifts between policy members and unnerve the markets.

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