Spreadex Market Update
US markets to set for new record highs despite mixed data
The Dow Jones’ astonishing February, which saw fresh records for around half of its trading days, looks set to continue into March; so too the NASDAQ, which finally touched 5000 after 15 years. The interesting side of this growth is that the US markets seem to have not only regained their propensity for record runs, but their ability to ignore the USA’s economic failings.
February wasn’t a banner-month for US data and March has continued that trend, with personal spending falling and Markit and ISM manufacturing surveys painting a mixed picture of the USA’s factory health. Yet is appears these figures aren’t affecting investors; apparently the mere perception of the US markets’ strength is enough to make this belief tangible at the moment.
The FTSE, prompted by strong manufacturing figures, had touched an intraday record this morning; come this afternoon and the UK index had lost much of this growth. The China rate cut inspired gains by copper and the FTSE’s mining stocks couldn’t sustain itself into the afternoon, and after opening strong they began to tank as the day went on. Joining KAZ Minerals, Vedanta Resources and Rio Tinto on the losers’ bench was Tullow Oil. As Brent Crude continued to slide, Tullow’s Ghanaian woes contributed to rumours it will be axed from the FTSE100 as its losses began to widen.
Finally, even on a day where the focus was elsewhere, important news managed to leak out in regards Greece. This time the information came from the mouth of Spain’s economy minister, who claimed that there will be a third, €50 billion bailout for Greece, with Spain itself providing around 14% of the figure. Whilst there has been no movement to confirm or deny this report, it is interesting in its timing; it was only this weekend that Greece’s Tsipras had ignited a row with Spain claiming it, alongside Portugal, had formed an ‘axis of powers’ against a Syriza-led Athens. Regardless of the veracity of these reports, the news, alongside the US strength, allowed the Eurozone indices to ride out the wobble they had seen in the middle of the day, with the DAX especially resuming its record push.
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