Spreadex Market Update
Markets overcome mid-afternoon jitters to hold onto growth
Not that Janet Yellen’s pre-testimony statement was much help, the Fed chair presenting the markets with a typically cautious, and arguably unenlightening, report to mull over. Yellen warned that US conditions have become ‘less supportive of growth’, whilst also claiming, in a rather mild assessment of what actually happened, that China’s economic slowdown has exacerbated the widespread fears about the global growth outlook.
Yellen wasn’t all negative, reaffirming the US is still seeing ‘ongoing employment gains and faster wage growth’, before making an attempt to reassure the markets that current economic conditions mean the central bank will only implement ‘gradual increases’ to the federal funds rate. Yet, if anything, the dollar took the news as a sign of more hikes ahead, taking back the pound’s early growth whilst gaining ground on the euro. Of course Yellen also defended the late-2015 hike, even if her admittance of ‘less supportive’ US conditions arguably painted a slightly more mixed picture on the wisdom of the December decision than she could perhaps openly admit.
So, what did this do for the markets as a whole? Well, with Brent Crude losing momentum, falling below $31 per barrel in the process, the FTSE lost much of its lustre, its gains shrinking to mere 30-ish points. The DAX, meanwhile, just about managed to hold on its near 2% jump, rising and falling on the fortunes of Deutsche Bank. The Dow Jones, meanwhile, rose around 85 points at the open, just below the peaks the futures promised earlier in the day.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
