Spreadex Market Update
Indices slide whilst commodities soar
The FTSE was dragged kicking and screaming away from its hard-earned 7000 level last night, leaving it around 50 points shy of that psychological mark at open this morning. However, despite another high US oil inventories figure, Brent Crude is only $0.50 off of hitting $60 per barrel for the first time in a fortnight; similarly, copper has put aside the Chinese manufacturing obstacle that appeared earlier in the weak to trade near $2.85 per pound. If these commodities can maintain their gains, then the oil and mining sectors may be able to push the UK index back to its record levels. A strong retail sales figure would be the cherry on top, and could create a positive environment for the FTSE to do more than just lick its wounds.
easyJet raised its profit guidance in its pre-close trading statement, leaving the skies looking slightly more orange this Thursday morning; however, warnings over ‘volatile currency’, one of the more prevalent trends on the markets of late, has spooked investors and ensured that the UK’s largest airline opened at a loss after the bell.
Whilst copper and oil impress, gold was keen not to be left out of the party, as the precious metal finally regained its $1200 per ounce mark for the first time since the start of March. Gold has been seeing steady gains for much of the week due to fluctuations in the dollar, and the latest resurgence by the euro and the pound against the greenback has given a window of opportunity for the metal that investors have ran with.
Thursday morning’s euro-dollar strength, something of a trend this week, has exacerbated the sell-off in the Eurozone despite German consumer confidence hitting a 13 year high and more hopeful murmurs of a new Greek deal next week. The declines that set in due to the dismal US data yesterday afternoon have proven difficult to shake, with the Eurozone indices being impervious to the wave of strong figures that have been released this week. With the US futures looking shaky, it may take a turnaround at the US open for the losses in Europe to stall.
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