Spreadex Market Update
US open spoiled by component order cut from Apple
A larger than expected fall in US import prices, at -0.5% against the -0.1% forecasts (and with a downgraded performance for last month) isn’t significant enough to dissuade the Fed from whatever December rate-hike plans it might be concocting, In other words it was just a bit of bad news, contributing to the Dow’s 60 point fall after the bell. Exacerbating matters was a near 3% tumble from Apple, with Credit Suisse providing investors with the ominous news that the tech mega-giant has recently slashed its component orders by 10%.
The FTSE fared no better; its mining stocks provided the brunt of its losses after copper fell by nearly a percent in the aftermath of Moody’s report on China, causing the UK index itself to drop by 25 points. Frustratingly for the FTSE its commodity conundrum may only worsen when China releases its industrial production in the early hours of tomorrow morning; and whilst the figure is currently forecast to increase 0.1% to 5.8% month-on-month, China hasn’t been able to match analysts’ estimates in this area since July. Attention will then turn to the UK jobs report, with an expected 3.2% increase in the average earnings index (matching the 2015 high) likely to be the focus.
Outperforming their UK and US peers were the Eurozone indices; boosted by the euro hitting a 7 month low against the dollar the DAX and CAC managed to post some sporadic gains as the afternoon went on, even if they soon joined the rest of the Western markets in the red.
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