Spreadex Market Update

European headline indices open lower



European headline indices have all opened lower this morning, tracking losses in the US and Asia overnight following comments from Philadelphia Fed President Charles Prosser, who addressed the Elephant in the Room by saying that QE, including the bank’s purchase of $40bn a month of mortgage bond purchases, was unlikely to do much to boost growth and decrease unemployment.

Given that recent encouraging data – including yesterday’s consumer confidence and Richmond Manufacturing Index figures from the US – did not provide more than a short term boost it would appear that the bears are winning at the moment and with data including the UK CBI Distributive Trades Survey, German CPI figures and US New Home Sales we could potentially be in for a choppy day.

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