Spreadex Market Update

PMI data revives FTSE but leaves the rest of Europe in the red



The FTSE, after initially dropping to -0.70%, is now over 25 points higher as positive news throughout the day lifts investors moods.

Firstly, UK markets were given a boost as IHS Markit PMIs, released this morning, were better than expected.

It showed how the UK economy is clearly recovering much better than the Eurozone, due to recent rising COVID-19 cases across the continent.

This has led to the DAX currently down -1.06%, and the CAC not doing much better at -0.71%.

As British consumers seem to be handling the rising inflation quite well, some are thinking this could be enough to convince the Monetary Policy Committee, that a rate hike in December is not yet necessary.

Furthermore, the early slip partially driven by pessimism for BP and Royal Dutch Shell, after expectations of President Biden releasing oil from the country’s strategic petroleum reserves, were quickly eroded.

The President has now announced that the Department of Energy will make available releases of 50 million barrels of oil to lower prices.

Many, however, are not impressed with this announcement, and believe this will be a short-term solution, as most of the release will in fact only be a loan to the market and had already been approved by Congress.

US markets seem to have pulled back from gains yesterday as technology stock investors continue to contemplate the implications of Jerome Powell’s renomination to chair of the central bank.

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