Spreadex Market Update
Brexit fears and Brent Crude decline ensure another red start for FTSE and DAX
A mixed Asian session has left the European indices to deal with Brent Crude’s latest decline with little optimism, the black stuff slipping below $33 per barrel as the morning continued. Of course this was bad news for the FTSE, falling around 40 points as the index’s oil and mining stocks (the latter still suffering in light of BHP Billiton’s hacked dividend on Tuesday) started the day in their regular shade of claret.
The FTSE was likely saved from further lows by its housing stocks; following in the footsteps of Persimmon and Bovis Homes earlier in the week Barratt Developments revealed a 40% surge in half year pre-tax profits this morning, rising around 1.5% and lifting its sector peers alongside it in the process. A slightly more surprising member of Wednesday’s green list was Weir Group; despite a 21% plunge in annual revenue to £1.9 billion, coupled with a 46% fall in pre-tax profit to £220 million, the stock surged nearly 5% this morning, likely due to the company’s promise that it intends to cut another £40 million in costs during 2016.
With little on their agenda this Wednesday it looks like the Eurozone indices are going to suffer under the same Brexit fears currently plaguing the pound and the FTSE. This left the DAX and CAC both down around 1%, continuing to tumble away from the near 3 week highs hit at the start of the week.
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