Spreadex Market Update
US open only makes things worse as investors fail to find a reason to stick around
The first? Yet another dismal manufacturing figure, with the USA’s ISM survey missing expectations. The second? A truly awful open, similar to those in Europe this morning, that saw the Dow Jones immediately drop by over 300 points as the bell rang.
Whilst that ISM manufacturing figure is the least important piece of data in a week bursting at the seams with rate-hike relevant numbers, it still places a question mark over Fed vice-chair Stanley Fischer’s claim at the weekend that a September lift-off is in no way off the table. Tomorrow’s ADP non-farm figures should help clarify things a bit more before the government-released non-farm Big Daddy arrives on Friday, with jobless claims on Thursday to tide investors over.
Tuesday’s manufacturing weakness, from China to Europe to the US, appears to have contributed to the day’s oil slide, with Brent Crude giving back a notable chunk of the ground it had gained in the past few days of trading. This, of course, spelled bad news for the FTSE, which plunged around 150 points lower after the US open as investors failed to find a reason to stick around. Without a massive change in sentiment there isn’t much on the cards to rescue the FTSE tomorrow either, with only the UK construction PMI and US crude oil inventories of any direct relevance to the index.
Of course with the entire market going to the dogs the Eurozone indices weren’t going to escape unscathed, with the DAX shedding around 250 points whilst the CAC crept into 3 digit decline territory. What is frustrating for the Eurozone is that even if, by some miracle, the Chinese fears dissipate there will be a volatility-inducing Greek election to look forward to in the next few weeks.
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