Spreadex Market Update
Investors ignore micro-news to focus on dire (China-fuelled) macro-landscape
Though the current Saudi Arabia/Iran tensions may be fuelling a Brent Crude bounce back (the black stuff now up 1.5%), copper has continued to collapse this morning, giving the FTSE’s commodity sector all the reason it needed to carry its persistent predilection for heavy losses into the New Year. The fact that the UK’s manufacturing PMI hit a 3 month low of 51.9 only exacerbated the FTSE’s failings this Monday, the index losing all of its Christmas gains as it continued to fall by over 2%. The cherry on top? The pound is now at a 9 month low against the dollar, a toxic cocktail of Brexit fears, weak commodities and the worry that interest rates are a long way from being raised leaving sterling to suffer.
The Eurozone actually saw a morning full of manufacturing highs, the French and German figures at 21 and 4 month peaks respectively, with the region-wide number itself beating estimates at 53.2 against the 53.1 forecast. Yet you wouldn’t be able to tell by looking at the Eurozone indices; the CAC kicked off the year with a 2.7% decline whilst the DAX, doing what the DAX does best, dropped a whopping 375 points.
Looking ahead to the US open, and things are unlikely to change for the better; the Dow Jones is currently warming up for a 270 point plunge after the bell, leaving it close to the 2 month lows hit in the middle of December. And though there is still the Markit and ISM manufacturing PMIs to come (forecast at 51.1 and 49.1 respectively), as the European indices have displayed investors aren’t too interested in the micro figures when the China-fuelled macro-landscape looks so dire.
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.
