Spreadex Market Update
Perky European indices widen gains as FTSE rises on better than expected manufacturing growth
Creeping up by around 30 points the FTSE was lifted by a better than expected manufacturing production figure, which rose to a 4 month high of 0.7% compared to the -0.2% seen last month; the industrial production data also saw an increase, from -1.1% to 0.3% month-on-month, though the rise was slightly less than the 0.4% anticipated. For a much-maligned sector it was a welcome relief, especially given last week’s woeful PMI, even if the report wasn’t unequivocally good news, the mining and energy sectors continuing to struggle.
That persistent factor explains why the FTSE couldn’t match its European peers this Wednesday. Despite Brent Crude once again approaching $40.50 per barrel (with the US oil crude inventories to come later in the day) a largely red mining sector prevented the UK index from getting too carried away, the morning’s manufacturing data reminding the sector that it still is a hotbed of unhappiness despite its recent highs.
The Eurozone indices were far more buoyant than the FTSE this Wednesday, the DAX and CAC both rising around 1.2%. It is interesting that the French index kept in-step with its German counterpart, since the Banque de France cut its growth forecasts to 0.3% for the quarter this morning following a factory sentiment slump. Arguably, however, that news merely puts more pressure on Mario Draghi ahead of tomorrow’s meeting, investors hoping for a multi-faceted approach to stimulus (and not a damp squib like last December) from the region’s central bank.
Continuing its to roll through its empty economic calendar like a ball of tumbleweed the Dow Jones is set to follow Europe’s lead like it has all week, the futures pointing to a near 100 point increase at the open. That growth would see it steady above the 17000; still, contextually speaking, a whopping 1000 points lower than where it was this time last year.
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