Spreadex Market Update
Noxious start to the New Year continues with awful US manufacturing data
Sporadically threatening to dive past the 400 point plunge mark, the Dow saw a slightly better than expected, but still over-3 year low, Markit manufacturing PMI joined by an ISM manufacturing figure that came in at a truly dismal 48.2 against the 49.1 forecast. It paints a worrying picture of the US manufacturing landscape, one that exacerbated the already intense (China-inspired) fears that had arisen this Monday and helped the European indices double down on their losses.
Down around 130 points things actually could have been worse for the FTSE this Monday. One of the day’s few bright spots has been the robust rebound from Brent Crude (even if its rally has arisen from the growing, and worrying, tension between Saudi Arabia and Iran), meaning the likes of Shell, Tullow Oil and Premier Oil went against the grain this afternoon to post varying levels of growth. Yet the weight of the UK mining stocks was too heavy to create any real mitigating effects, leaving the FTSE at its current near 2 week low.
The European fun didn’t stop with the FTSE; if anything the Eurozone was the sight of the worst declines this Monday, despite having a far better set of manufacturing PMIs than both its US and UK peers. The DAX, which always relishes an opportunity for drama, at points dropped by nearly 450 points as the afternoon crawled on, with the normally calmer CAC posting a 2.5% fall. That leaves both indices in firm 3 week low territory, with a fall below their recent mid-December nadirs more than possible if this aggressively negative atmosphere extends into Tuesday.
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.
