Spreadex Market Update
Bond selloff reverses, DAX demented, Alibaba impresses investors
At this point the German index is so erratic it is hard to rationalise its actions. Even disregarding the bond bonanza earlier in the day, the DAX is flipping between hundreds of points in losses and gains each day. With Wolfgang Schauble pouring more cold water on the already freezing chances of a Greek deal on Monday and the UK election likely to bring with it more instability it is unclear when, to put it simply, the DAX will calm down.
Over the US of A, unemployment claims weren’t far off the 15 year lows seen last week. However as has been the trend of late, employment data has become tricky for the markets to digest as investors get caught between wanting a hike-delaying bad figure whilst also needing to see some upswing in the stagnant US jobs sector. This meant the Dow Jones looked rather flat after the bell; not great, but considering the wild movements seen today, not too bad either.
Alibaba’s earnings release this afternoon was stuffed to the brim with information, all of it largely positive. The company beat expectations with a 45% increase in fourth quarter revenue to $2.8 billion, the catalyst for this growth being a 352% leap in mobile revenue. Perhaps most interestingly for the company’s future, current CEO Jonathan Lu will be replaced by long-term COO Daniel Zhang from Sunday onwards. Instead of being taken as a sign of instability, this change at the top, alongside the earnings release in general, saw Alibaba finally managed to impress investors in a way it hadn’t since last November, sending the stock over 7% higher as the day went on.
And what of the FTSE? Whilst the DAX and the Dow largely recovered from the midday craziness, the UK index couldn’t shake off its feeling of dread ahead of the election results tomorrow, remaining firmly in the red as trading drew to a close.
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