Spreadex Market Update
Construction contraction nudges FTSE in the red whilst Standard Chartered widens losses
A slightly weaker than expected UK construction PMI nudged the FTSE into the red this morning, the index falling by around 10 points in the aftermath. With the news also causing some of its miners to abandon the nascent good cheer they were displaying after the bell it looks like the FTSE is in for a rather dull, and negative, day. Not helping is Standard Chartered, widening its losses to over 10% as investors react to the sheer scale of the company’s restructuring plans. On top of the 15000 in job cuts and £3.3 billion rights issue CEO Bill Winters has announced the potential liquidation of $20 billion in risky loans, suggesting a company that may have overstretched itself in the past few years. Investors certainly seem to think so, pushing the bank to a one month low of £6.46.
If anything the Eurozone was even worse than the FTSE this morning; the latest twist in the Volkswagen scandal, which has seen Porsche and Audi dragged into the muck, has led the DAX 30 points lower . A big miss in the Spanish unemployment change figure merely added to the region’s negative sentiment as the day continued, providing yet another red flag around the election-nearing nation.
With the European indices looking ropey, what can the US open bring to the table? Well, with the Dow futures down around 40 points and a likely improving, but still negative, factory orders figure to come the answer seems to be, simply, not a lot.
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