Spreadex Market Update

In line with investors expectations, the ECB leaves interest rates unchanged at 0.0%



FTSE (-0.25%) and DAX (-0.25%) both see a slight decline, as the recent news out of the European Union both does not come as a surprise, nor fill investors with too much excitement.

If it wasn’t for WPP gaining over 6.5%, the FTSE could have been much lower. Today they released figures showing advertisement sales up past pre-covid levels, thanks to many companies continuing to spend heavily on reaching consumers during lockdown eases.

Contrary to the rest of Europe, the CAC saw a 0.38% increase, with Capgemini’s large gains being a strong factor, due to the company surpassing all its 2021 financial targets. This was balanced out by the disappointing figures of Unibail-Rodamco-Westfield leading to a drop of over 6%, with a fair excuse of covid lowering footfall in many shopping centres.

As for the US, it is a different story. All three major indices up; DOW (+0.50%), S&P (+0.70%) and NASDAQ (0.90%).

Even with a slightly disappointing US economic growth result of just 2%, the strong earnings reports from major companies helped boost markets.

Namely Ford, as its shares jumped more than 9%, posting very impressive figures, even with the continued issue of chip shortages devastating the car manufacturing markets. In comparison Volkswagen saw over a 4% decrease in share price today.

With the consideration of recent high inflation to only be temporary, according to the European Central Bank, could this calm investors nerves, and lead to sustained growth over the coming weeks and months? Or as Twitter owner Jack Dorsey believes, will we see a large financial bubble burst in the US and subsequently the rest of the world?

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