Spreadex Market Update
Fears over return of China next Monday damages Asian stocks, causes European weakness
Despite the absence of China from the market landscape for the past 2 days, its presence was still felt in the Asian session, with big losses in Japan (the Nikkei hitting a 7 month low) and Hong Kong as nervy investors shed risk ahead of next Monday, which could bring with it a Chinese market lacking the price-lifting last-minute support its government had been providing in the run up to the end of week military parades.
It looks like the flip-flopping nature of markets is set to continue this Friday; after the Draghi-boosted highs on Thursday afternoon, the European indices seem to be in the midst of a harsh come-down this Friday morning, with all the major indices falling by over a percent. The FTSE was hindered by Brent Crude dipping below $50 per barrel once again, with the subsequent wash of red in the oil and mining sectors putting some extra downward pressure on the UK index.
Of course, the Eurozone was similarly dire this morning, with the DAX especially hurt by an awful German factory orders figure. Coming in at -1.4% against the -0.5% expected, investors appear to have been surprised by the weakness, and perhaps rightly so given how strong Germany’s manufacturing PMI was earlier in the week. Regardless, the DAX was opened to a 3 digit decline, with the CAC undergoing a similar slide.
And that’s about it for Europe this Friday. All of today’s focus is on arguably the most important non-farm payroll figures in recent times, and certainly the most vital in 2015, and European investors are unlikely to want to do much until after the figures are released.
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