Spreadex Market Update
Dow Jones joins global sigh as US manufacturing sector remains in sorry (if better than expected) state
Both the Markit and ISM PMIs surpassed expectations (at 50.7 and 51.3 respectively), though the performance from the former still points to a slowdown month-on-month while the latter is hardly a world-beating number, being lower than the Eurozone’s own stagnant growth. It is hard to tell whether the Dow’s negative start to the session stemmed from a) the general malaise that engulfed Europe this morning, b) the better than forecast PMIs giving a bit of extra heft to the Fed hawks or c) the fact that the manufacturing figures are still worryingly weak. Regardless the Dow Jones plunged 90 points after the open before settling at a 60-ish point loss, leaving the index at its lowest price in around a week.
The FTSE remained the day’s worst performer, at points falling as much as 1.2% before reining its excesses in for a more stable 0.8% drop as the afternoon wore on. The index was attacked from all sides this Wednesday, with a dreadful, if improving, manufacturing sector joined by cut growth forecasts from the OECD and a sharp slide from Brent Crude (which has fallen below $49 per barrel).
The Eurozone indices weren’t shy about joining in with the global sigh this Wednesday, the DAX and CAC dropping by over half a percent as the day went on. The Eurozone will be more firmly in focus on Thursday; the ECB’s June meeting may spark some excitement, for the euro at least, with analysts expecting Mario Draghi and co. to revise the region’s inflation forecasts higher during tomorrow’s conference.
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