Spreadex Market Update
Impressive start for FTSE as strong Chinese services PMI lifts commodity sector
Jumping by just shy of 50 points at the open, the UK index did have an unusual amount of help as Wednesday got underway. That positive figure from China appears to have inspired a bit more of an appetite in the commodity sector, with the oil and mining stocks looking fairly strong despite a 40 point drop for Brent Crude. The index will be hoping that its services PMI can continue its comeback, analysts forecasting an increase to 54.6 from 53.3 last month.
An added bonus for the FTSE was a 4% rise for Marks & Spencer; despite continuing concerns in a clothing sector that remains a staunch underperformer (with general merchandise sales falling 1.2% for the company’s fiscal first half), raised profit forecasts due to higher margins saw M&S more than saved from the investors’ ire they could have been in for. Not that it was a completely perfect morning for UK stocks; a Living Wage-inspired profit warning pushed Wetherspoon’s 4.5% lower, whilst Vedanta, falling nearly 4%, was a sector-outlier after it announced it would be halting its dividend.
Whilst much of the Eurozone continued to rise this Wednesday, the DAX dragged behind its index peers as Volkswagen took its latest dive into the gutter. With the car giant admitting that another 800,000 vehicles may be affected by CO2 emissions ‘irregularities’ VW’s stock plunged nearly 8%, forcing the German index to remain flat after the bell.
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