Spreadex Market Update
FTSE slides as US crude oil inventories rockets once more
This meant a significant push above 7000 remained elusive for the time being; the losses for Royal Dutch Shell began to outweigh the gains elsewhere in the sector due to the sheer size of the company. On top of this came another astonishingly high US crude oil inventory, rising to 10.9 million barrels in the sharpest weekly increase since 2001, which contributed to the gradual slide of the FTSE as its oil sector started to lose some of the impressive gains it had made this morning.
The Tsipras/Putin head to head appears to have yielded results, with both pledging to improve the relationship between the two black sheep of the European community. This announcement solidifies what Tsipras has called Greece’s attempt to ‘explore all international opportunities’, whilst simultaneously making clear to its creditors that it has allies elsewhere. However Putin has denied that Greece has asked for financial aid and confirmed it will not remove the sanctions on importing Greek food. Regardless, this meeting has helped contribute to the negative trading environment that has plagued the Eurozone throughout Wednesday.
In the US, the Fed’s Jerome Powell stated that the first rate rise could still come in June but that the dollar’s strength remains an issue, suggesting that the US economy is currently perhaps more suited to a later lift-off; this left the greenback at the mercy of the pound which notched up notable gains for a currency that is in the throes of an election campaign.
However, NY Fed president Dudley was slightly more upbeat than Powell, stating that the dismal March non-farm figure was largely affected by adverse weather conditions, alongside other short-term factors, the significance of which the Federal Reserve as a whole are aware of. The Fed meeting minutes this evening should shed more, if slightly less current, light on the situation, and could hold more damage to the dollar in store. The overall negative turn for the greenback meant that the US markets improved on the rather limp gains before the US oil inventories figure waded in and cast a negative light on this afternoon’s trading.
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.
