Spreadex Market Update

A positive afternoon for markets on the whole



A positive afternoon for markets on the whole, the FTSE 100 finished up 36.82 and the Dow is currently trading 81 points higher. Sentiment appears to be no news is good news amongst investors after a relatively quiet day. Results were mixed today with US trade balance being better than forecast however Unemployment claims were 7000 more than forecast.

With Mario Draghi announcing yesterday that the ECB would not hesitate to fail banks in its stress test next year, the Federal Reserve not to be outdone today announced plans for new liquidity rules to help prevent a future credit crunch. These rules are in accordance with the Basel III international regulatory accords are targeted to be implemented two years earlier than in Europe. This should provide a boost in the markets with the Fed working towards a more stable future.

A gaggle of angry Germans today called on the U.S ambassador to answer questions over suspicions that Angela Merkel’s phone may have been bugged. Should this turn out to be true such an egregious breach of privacy would undoubtedly scupper any free trade deal that was on the cards prior. Don’t expect this issue to go away quietly which in turn could lead to volatility in the markets as tensions rise.

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