Spreadex Market Update
Banking sector drags down FTSE and DAX as markets hit 2 week lows
The data from the US this afternoon actually wasn’t that bad; the core PCE price index fell from 0.2% to 0.1% month-on-month, but that was expected, while a worse than forecast personal income reading (which remained at 0.2%) was countered by the fact that the personal spending figure was unexpectedly unchanged at 0.4%. Yet this didn’t matter much to the Dow Jones, which followed Europe’s lead by slipping 80 points to hit a near 2 and a half week low of just above 18300.
The FTSE maintained its 0.6% drop, dragged lower by the likes of Shell and RBS. The day’s real losses were found in the Eurozone, however. Both the CAC and DAX plunged by 1.8%, suffering under the weight of its crocked banking sector; Commerzbank dropped by 8.5% after its morning profit warning, taking with it Deutsche Bank (which fell 4.6%), Credit Agricole (down nearly 3%) and BNP Paribas (which slipped over 4%).
Tomorrow might well see these losses continue, as the Western world reveals the state of its services sector. The UK figure should be key, as it gives investors another (likely unpleasant) glimpse into its post-Brexit landscape; it will also be interesting to see if there has been any effect yet on the Eurozone.
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.
