Spreadex Market Update
FTSE falls on commodity/trade deficit/Sports Direct pressures
Whilst Glencore, up 11%, initially led the rest of the FTSE’s mining stocks higher after the company announced a new set of debt-tackling tactics, the stock is increasingly looking like an anomaly in the gradually reddening commodity sector. Things have been made worse by the fact that Brent Crude has abandoned whatever minor-rebound it had begun after the bell, instead teetering on the edge falling below $40 per barrel once again.
Add on top of this a near 13% fall for Sports Direct (hurt by slightly missed half year expectations and a growing scandal over its workplace practices) and a worryingly widening goods deficit figure (increasing from £8.8 billion to £11.8 billion) and the FTSE couldn’t help but fall by 25 points as the day went on. At least the pound is looking healthy, surging nearly 1% against the euro and up around 0.1% against the dollar; it will be interesting to see, however, if sterling can hold onto its gains if Ian McCafferty remains the MPC’s lone hawk.
The Eurozone looked increasingly flat as the day continued, with Volkswagen’s attempts to reassure investors that the emissions investigation is under control not as successful as the company would have liked. The Dow futures, meanwhile, are suggesting a 40 point jump at the open, with jobless claims and import prices (expected at 266k and -0.8% respectively) still to come.
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