Spreadex Market Update
Dollar dominates despite latest weak jobs figure
The damage this does to the possibilities of a June rate hike, and the prevention of unneeded extra strength in the dollar this delay would provide, should have been a boon for the US markets after the bell. However, the greenback showed no sign of slowing down after the figure was released. The dollar’s continued rally is perhaps more due to Greece-inspired euro jitters and trade deficit-based pound declines rather than any strength arising from the USA; yet regardless of its source, the dollar’s latest thrust ensured a limp open for the US markets.
The FTSE managed to stretch its legs into the 7000 range despite a quiet Thursday afternoon. Sustained rebounds for copper and oil meant that those sectors, so critical to the current health of the FTSE, could continue to recover from yesterday afternoon’s slight slip, and in the process allowing the UK index to maintain its Thursday gains. What is remarkable about the FTSE’s current 5 day run is that it is coming as the UK election looks more and more uncertain; instead of fleeing the FTSE, investors are showing a confidence in the UK index that is allowing it not to stray too far away from its landmark 7000 level.
The news that Greece did indeed manage to pay its IMF loan instalment back on time meant the Eurozone could continue in the positive vein of trading it had hit this morning, even if the repayment didn’t assuage fears surrounding the euro. Despite the continued drain of the Greek saga, the DAX is now only around 100 points off of its all-time highs; even in the current volatile global landscape the key worldwide indices are continuing to feel the magnetic draw of their psychological milestones, be it 7000, 12000 or 18000.
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