Spreadex Market Update
Kuwait-shaken Brent Crude dips below $40 per barrel as China-inspired market malaise continues
Adding to the bearish tone of the day was Brent Crude; whilst it spent most of the morning at or near 3 month highs, negative notes from Goldman Sachs and UBS and, more importantly, a refusal from Kuwait to cut its oil output soon saw the commodity dip its toes back below $40 per barrel, ensuring the global indices couldn’t turn the slight post-US open recovery into anything approaching positive momentum this afternoon.
Starting the American session down around 100 points there was little for the Dow Jones to work with this Tuesday, a slip in consumer sentiment joining the China and oil situation on the list of reasons investors were feeling a bit glum this afternoon.
With Brent Crude threatening to lose its recent lustre the FTSE saw its losses increase back to around 50 points this afternoon. The pound also suffered this Tuesday, a pro-EU speech from Mark Carney (even if the central bank chief denies it was such) helping sterling to a 0.4% fall against the dollar as investors were reminded of the potential ramifications of a Brexit. The Eurozone indices, meanwhile, saw a notable improvement, the DAX and CAC nearly halving their losses to around 0.7%; however, it seems that that is as good as it is going to get for the region at the moment, at least until Draghi reveals what he has in store on Thursday.
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