Spreadex Market Update
Chinese data brings out the bears as nervy European markets widen their losses
Despite Brent Crude holdings its head above the $40.50 per barrel parapet (around halving its initial 1% decline) the FTSE struggled to gain any positive traction, lingering at a 40 point loss for most of the morning. That does, however, make it the best performing major indices, a few specks of green found in its commodity stocks (which are caught between oil’s continued recovery and the ominous signs out of China) and a 6% surge from Burberry, following some surprising takeover speculation, keeping the FTSE from the lows seen by its European peers.
With the Chinese export slump the last thing investors needed to hear the DAX and CAC saw their losses at points widen to the 1.5% despite some decent industrial production and trade balance figures respectively. The region as a whole is quivering with nervy anticipation, investors erring on the negative side of expectations ahead of Thursday’s ECB meeting, learning their lesson from December’s Draghi disappointment.
Looking ahead to this afternoon and the US markets are set for a similarly flaccid start to the day, the Dow facing a 110 point drop away from the 17000 mark it clawed back above last night. With little on the economic agenda (it really is a quiet week following last Friday’s non-farm excitement) it looks the bearish sentiment induced by that Chinese data is set to continue, the only hope for a shift in sentiment arguably coming from any upwards movement in the oil price.
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