Spreadex Market Update
Mining mayhem joined by fresh Brent lows as commodities continue to collapse
With Brent Crude at points trading below $40 per barrel for the first time since February 2009 the global indices didn’t stand much chance of recuperating any of their morning losses this afternoon. The FTSE dropped 65 points to a 3 week low (and is lucky it didn’t fall any further), the losers list led by Anglo American, which dropped nearly 11% after not only suspending its dividend for 18 month but also announcing the loss of 85,000 jobs. The Eurozone was just as awful as the rest of the global indices, the DAX and CAC plunging 190 and 65 points respectively.
The US markets were equally as dire, the open only adding fuel to the already raging commodity sell-off fire. With Chevron and ExxonMobil leading the charge the Dow Jones plunged by 180 points, effectively wiping out all the post-non-farm gains it had made last Friday. The JOLTS job openings number only exacerbated matters, underperforming expectations at 5.38 million.
There is little on the horizon that looks like it can provide a salve for today’s commodity burns; if anything, with a Chinese inflation figure released in the early hours of Wednesday morning, a figure that could easily underperform expectations if today’s trade balance data is anything to go by, tomorrow may be even worse.
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