Spreadex Market Update

Equities down



Equities were broadly down overnight due to weak Chinese services data and a rise in New Zealand’s jobless rate although the decline has reversed course in the European session as Societe Generale beat analyst estimations helping lift sentiment in the banking sector.

Attention will switch to Spain’s borrowing costs at its auction for 3 and 5 year bonds this morning and investors will also be listening carefully to Mario Draghi’s comments on Spain’s financial woes at the press conference later on.

It feels like we are, and have been, in a range bound state for several weeks now as sluggish and slowing global growth, impressive US earnings, an uncertain recovery in the US, and poor alternatives for investors to receive satisfactory yields outside the stock markets, are all playing their part and almost creating an equilibrium for equities.

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