Spreadex Market Update

Moody’s-inspired moody markets after ratings agency warns on China




Hot on the heels of the country’s inflation slip came a report from the ratings agency that claimed ‘the main risks to the economic outlook are a bigger than expected global fallout from the Chinese slowdown’. Not necessarily a surprising statement, but given the fact they had already had to endure China’s aforementioned crumbling CPI investors were in no mood for another dour dollop of data reaffirming that the main market-bogeyman is just as terrifying as first thought.

Such fears helped play havoc with the UK commodity stocks (not that they ever need much encouragement to plunge into the red), wiping out the FTSE’s nascent growth to leave it down by half a percent. Things weren’t any better in the Eurozone; add onto Moody’s mood-killer about China the burgeoning problems between Greece and its creditors (it all sounds eerily familiar doesn’t it) and the DAX and the CAC fell by 65 and 30 points respectively, despite decent industrial production figures for the latter.

Looking to the US open and those hoping for a white-knight performance from the Dow Jones appear to be out of luck, the index expected to fall another 50 points as the bell rings on Wall Street, with only import prices to distract investors from this morning’s warning.


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