Spreadex Market Update
FTSE and DAX slump ahead of region-wide services PMI splurge
After teasing 6200 at points during yesterday’s trading the FTSE took a tumble after the bell this Tuesday, a 60 point drop leaving it closer to 6100, the bottom of its month-long trading bracket. Of course matters aren’t helped by Brent Crude’s decline; inspired by Iran’s continued intransigence on the issue over an output freeze the black stuff has now trickled below $38 per barrel, in turn weighing on the perpetually precarious UK commodity sector.
With such a shoddy start to the day the FTSE will be hoping for a helping hand from the UK services PMI; after nearing a 3 year low of 52.7 last month things look to have recovered slightly in March, analysts expecting the figure to climb back to a more respectable (if lacking the same juice seen in the final quarter of 2015) 53.9. Whether that will be sufficiently strong to give direction-desperate investors enough reason to push the index higher, however, is another matter entirely.
The Eurozone indices were even worse this morning, the DAX and CAC falling by 1.7% and 1.5% respectively. The former was hit by a dire German factory orders reading; coming in at -1.2% compared to the forecast 0.5% the figure is now at its lowest point in 5 months. The DAX will be hoping for a better performance from the final German services PMI, expected to remain unchanged at a solid 55.5. The French figure, meanwhile, is forecast to have its rebound from contraction-territory confirmed, whilst the Italian and Spanish PMIs are both expected to see slight improvements. That should help the region-wide figure tick up slightly, from 54.0 to 54.1, a 3 month high.
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