Spreadex Market Update
European markets continue to suffer ahead of US non-farm jobs report
With a miserly 0.2 month-on-month increase to 51.0 (below the 51.4 forecast) the UK’s manufacturing PMI effectively remained at a 3 year low this morning, that news understandably failing to turn the FTSE’s Friday frown upside down. Instead the UK index widened its losses to around 80 points, matters not helped by the notable declines seen by both Brent Crude and copper.
The Eurozone led the day’s losses, the DAX and CAC plunging 1.6% and 1.8% respectively. This despite a largely decent display from the region’s manufacturing sector; whilst Spain underperformed expectations (adding to the country’s increasingly long list of economic embarrassments) and France remained below 50.0, there were solid showings from both Germany and Italy, the Eurozone-wide PMI also seeing a slight increase to 51.6 (still, admittedly, near its 12 month lows).
So, with the European session in a sorry state it is down to the US open to revitalise the markets, and what better way to do it than with a non-farm Friday? Analysts are expecting wage growth to bounce back to 0.2% from last month’s woeful -0.2%, but with a slip in the headline number to 206k from 242k; the discrepancy between the two figures may lead to a mixed reaction from investors, matters complicated by the lack of clarity over whether the frequent (if inconsistent) ‘good is bad’ mind-set is in operation following last week’s fairly dovish comments from Janet Yellen. The afternoon’s economic excitement doesn’t end with the non-farm jobs report, however; adding to a rather overstuffed Friday are the Markit and ISM manufacturing PMIs, the former expected at 51.5 with the latter forecast to climb out of contraction territory to a healthier, if still low, 50.8.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
