Spreadex Market Update

Little change in Europe while Dow Jones tries to defend all-time highs from US data-dump




Dropping around 20 points the FTSE dipped below 6650, sporadically grazing lows not see since the start of the week. The continued losses in the travel sector, alongside the wave of red currently coating the commodities, were the catalysts for the UK index’s Friday fall, though the residual disappointment that the Bank of England failed to reveal any stimulus measures yesterday obviously also played a part. The pound, meanwhile, held firm just below its post-Brexit highs, the currency spending the morning teasing $1.34 and €1.21 against the dollar and euro respectively without every committing to a push above those levels.

The Eurozone understandably saw the biggest losses this morning, the DAX and CAC falling 0.5% and 0.8% respectively following the tragic events in Nice on Thursday evening.

Looking ahead to the US open and the Dow Jones is still hovering near its all-time highs, though is around 50 points below yesterday’s peak. There is plenty of data for the US to deal with this afternoon, something that may not necessarily work in the Dow’s favour. Inflation is expected to remain unchanged at 0.2%, while retail sales are forecast to fall from 0.5% to 0.1% month-on-month and the Empire State manufacturing index is estimated to dip to 5.1 from 6.0. Things should be better after the bell; analysts expect industrial production to jump to 0.2% from -0.4%, with the capacity rate utilization reading forecast to rise to 75.2% from 74.9%. The preliminary UoM consumer sentiment figure, meanwhile, should increase to 93.7, though that is from an already downward revised 93.5 last month.


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.