Spreadex Market Update
US data largely disappoints, Eurozone’s Greek-inspired losses widen
As the jobless claims figure gradually climbs towards 300,000 the dollar suffered a blow this afternoon; the worse the jobs sector the less likely the Fed will be to raise rates, leading to notable rebounds from the previously damaged pound and euro.
There should be more movement from the dollar this evening, with the likelihood of two divergent speeches from Fed members; noted dove Dennis Lockhart is set to talk to business leaders in Florida, whilst heavy-hawk Richard Fisher speaks a few hours later. The markets have been sensitive to the comments of the Fed’s members of late, so it will be interesting to see what they do with these potentially differing sentiments.
In the continuing machinations of this earnings season, Goldman Sachs went the way of JPMorgan instead of Wells Fargo and Bank of America, beating revenue and profit forecasts by significant margins with its first quarter release this afternoon; Citigroup then followed suited, its own bested estimates helping reverse the 2% slump the bank had found itself in this year.
The Greek saga continued to rumble on in the Eurozone, with a EU spokesperson trotting out the usual line that not enough progress has been made by Greece. In response to the FT report this morning, Varoufakis denied that Greece asked the IMF for a delay; however his rebuttal seems to be based on semantics surrounding how informal Greece’s 'informal approach' was. Greek PM Tsipras claimed he is ‘firmly optimistic’ that a deal can be found by the looming deadline, a stark contrast to the tone struck by the people Tsipras needs to get the deal from, and unreflective of the Greek-inspired declines the Eurozone markets felt as Thursday continued.
The FTSE continued its own IMF-inspired losses, despite the best efforts of JP Sports and Debenhams, who were up 5.6% and 4% respectively. The FTSE’s situation was exacerbated by the mixed performance of its commodities sectors; with Saudi Arabia telling OPEC it pumped 659k barrels per day more crude in March, Brent Crude began to slip from the recent highs is saw yesterday, dampening the positive run the oil sector had been on so far this week.
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