Spreadex Market Update

Eerily calm Tuesday leaves FTSE and pound near yesterday’s highs




Opening effectively level just above 17800 the Dow Jones brought little to the party this Tuesday. It didn’t help that all the US session had to offer was a testimony from Janet Yellen, with the Fed chair highlighting the by now well covered risks of a Brexit, the Chinese growth slowdown and the general shoddy outlook of the US economy. So, nothing the markets haven’t heard before and, crucially, nothing to disrupt the week’s expected referendum domination.

Over in the Eurozone the region’s indices finally seemed to take note of the morning’s stellar ZEW economic sentiment data, the DAX and CAC both rising over half a percent. It likely helps that a lack of Brexit-news has allowed a few other items to creep into investors peripheries, seemingly to the benefit of the Eurozone’s performance.

And what of the FTSE? Well after flirting with some mild gains around lunchtime the UK index has fallen back into the red, but has seen its losses half, leaving it back above the 6200 mark. The pound, on the other hand, has lost its morning momentum, with cable trickling just below the $1.47 it soared to yesterday afternoon. Things may not be so serene tomorrow; the increasing proximity of the referendum, and the enduring closeness of Vote Remain and Vote Leave in the polls, means the markets could still be in for a rocky run-in before Thursday.


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