Spreadex Market Update

Investors are watching U.S. data



Investors are watching U.S. data to gauge the health of the world’s largest economy after the Federal Reserve said last week it needs to see more evidence of sustained improvement before slowing its $85 billion monthly asset purchases. This was evident yesterday when strong U.S. GDP figures spooked market participants with the consensus being that this will encourage Fed policymakers to taper stimulus sooner rather than later.

 

The S&P 500 posted its biggest loss since August 27th after Thursday’s session with the faster-than-estimated U.S. economic growth overshadowing a surprise interest-rate cut by the European Central Bank. . As a result, there was heightened interest in today’s U.S non-farm data with the expectation that a better than forecast figure could send the markets tumbling further.

 

This month’s figure has turned out to be far stronger than expected with the actual figure coming in 83 thousand higher (204 thousand) than the forecast 121 thousand. Additionally last month’s figure has been revised upwards to 163 thousand. While the higher reading points to strength in the world's largest economy, it could also mean the Fed might start scaling back its quantitative easing programme earlier than March, the market's current expectations.

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.