Spreadex Market Update
Relatively stable US open pull European markets back from the brink
Falling 150 points when the bell rang on Wall Street before stabilising in a far flatter form, the Dow Jones is, for now, avoiding the same worrying trading that has plagued Europe for much of Tuesday, instead rising by around 10 points. The Dow was arguably aided by a better than expected JOLTS job openings figure, coming in at 5.61 million against the 5.41 million forecast.
Yet even with a relatively stable start from the US things couldn’t completely calm over in Europe. Despite reassurances from CEO John Ryan (calling the company ‘absolutely rock solid’) and, even, German financial minister Wolfgang Schauble, Deutsche Bank continued to plunge this Tuesday, with investors’ fears over the company’s capital position pushing the bank lower than its post-Lehman Brothers price back in early 2009.This in turn ensured that the DAX remain below 9000; in fact the German index at one point dipped under 8800 before settling just above the 8900 mark. That does, however, still leave the DAX firmly in 16 month low territory, joined by an even worse performance from the CAC, which itself sporadically plunged below 4000 as the day went on.
With Brent Crude abandoning the $33.50 per barrel mark it grazed earlier in the day the FTSE followed its commodity sector lower, causing the UK index to hit a nadir not seen since November 2012, before settling at a milder (if still traumatic) 0.8% decline.
The markets will be hoping that Wednesday’s comparatively packed day of data will be able to see a swing in sentiment, a wave of European industrial production figures, and the start of a 2 day testimony from Janet Yellen providing (hopefully) some much needed distraction from the week’s early doom and gloom.
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