Spreadex Market Update

Euro shares open modestly



European headline shares opened modestly today as investors’ focus remained on the Eurozone and whether better than expected final GDP figures from the Eurozone as well as monthly German industrial production figures due for release later today could help compensate for data released yesterday that showed unemployment within the Eurozone has now hit an all-time high.

Clearly if the markets receive another day of poor Eurozone figures, then confidence in policy officials’ ability to cope with the debt crisis will take another hammering.

The markets will also have the potential outcomes of the key ECB press conference, due to be held tomorrow, in the back of their minds. There have been news reports that the ECB will cut record low interest rates further in order to help pull the Eurozone back out of recession.

However, prudent investors will hope that officials will announce more structural reforms in order to help ensure the Eurozone does not find itself repeating the dire economic state it is in now.

Furthermore, Alcoa once again kicked off the beginning of US corporate earnings season and reported fourth quarter profits after the bell yesterday which were in line with estimates.

However, perhaps more importantly, the company announced it expects demand to grow this year which will help reduce investors’ fears over the potential slow-down with the global economy.

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