Spreadex Market Update
Mixed bag of Eurozone GDP data sees DAX and CAC struggle for direction
Maintaining its 20 point climb the FTSE effectively ignored its one figure this Friday, investors choosing not to pay too much attention to the 2nd consecutive month of construction output contraction. The pound was similarly unchanged, steadily shedding 0.1% and 0.2% against the dollar and the euro respectively.
The Eurozone remained the main source of news this morning. In stark contrast to Germany’s better than expected 0.4% rise in GDP, Italy’s growth ominously ground to a halt in Q2, adding another item to the increasingly long list of things for PM Matteo Renzi to worry about. As for the region-wide figure the flash reading was as expected at 0.3%, meaning the Eurozone halved its growth between Q1 and Q2; the region-wide industrial production figure, meanwhile, was slightly more promising, bouncing back from the previous month’s -1.2% to hit 0.6%. Yet the mixed signals from this morning’s data only inspired inertia from the Eurozone indices, the DAX and CAC both struggling for direction.
Having risen above 18600 by yesterday’s close the Dow Jones doesn’t look too interested in really building on that level this afternoon, the futures promising a meagre 12 point increase after the bell. That could all change, however, following the latest US data; retail sales are forecast to fall to 0.4% from 0.6% month-on-month, something that could be countered by a recovery in consumer sentiment, the UoM reading expected to jump to 91.5 from 90.0.
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