Spreadex Market Update
Losses intensify as US joins its peers with weak set of manufacturing figures
With the Markit figure increasing from 51.2 to 52.4 month-on-month, but crucially underperforming the 52.7 initial reading, and the ISM number stagnating in contraction territory at 48.2, the US joined the rest of the world in displaying a disappointing set of manufacturing PMIs this Monday. To make matters worse the rest of the day’s US data was just as bad; the core PCE price index (the Fed’s favoured metric for inflation. Well, perhaps not this month) came in at 0.0%, as did the latest personal spending figures. Not only did this cause the Dow to plunge 150 points at the open, but it solidified the bearish tone that had been suffocating the European indices throughout the morning.
Suffering its usual oil sickness, the FTSE was one of the day’s worst performers, consistently threatening a sustained fall through the 6000 level as Brent Crude dipped under $35 per barrel. Of course the UK index’s oil and mining stocks were largely to blame, with BP falling on reports that it will post a 70% drop in profits when its reveals its latest results tomorrow.
And what of the Eurozone? Well, following a messy morning of manufacturing highs and lows the region largely settled into another day of dangerous losses, the DAX and CAC both dropping around 1.1-1.2%. Even Spain’s IBEX, initially outperforming its peers following the country’s 8 month high PMI this morning, has given up its gains, falling nearly 1% in the process.
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