Spreadex Market Update
US manufacturing miss step too far for previously optimistic investors
America joined Asia and Europe in a factory slowdown, with the ISM manufacturing PMI coming in at 28 month low of 50.2. Add onto this a higher than expected jobless claims figure, and the healthy gains the US futures had been promising for much of the day failed to materialise. Instead, the Dow Jones opened around 90 points below yesterday’s close, putting a stopper on its attempts to escape Monday’s lows. The US markets are likely also suffering from a case of pre-game nerves, with investors anxious before Friday’s always-lively non-farm jobs report.
The DAX, as it so often is, moved the most violently to the downside this Thursday afternoon, with Germany’s 2 month low manufacturing figure eventually causing the index to drop by around 175 points. The CAC appeared to suffer in the DAX’s wake, its 50 point jump turning into a 20 point loss as the day went on.
In contrast the FTSE was slightly more resilient; out of the major Western nations the UK perhaps saw the least arresting manufacturing drop, allowing the index to hold onto some meagre gains. A continued rebound from the majority of its commodity stocks, barring Vedanta Resources (still suffering from the effects of being put on Standard & Poor’s credit watch list) and Glencore (because, well, it’s Glencore) helped ensure that the FTSE outperformed its index-peers despite a sharp comedown from the morning’s highs.
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