Spreadex Market Update
Stocks Tank as SVB Scrambles to Cover Losses
Equities Hurt By Fresh Banking Woes
Equities prices were sharply lower in the US yesterday with the Down sinking by more than 2.3% on the day, while the S&P and the Nasdaq both fell by almost 3%. Should today’s US jobs data confirm further strength in February, the sell-off is at risk of accelerating further into next week’s US CPI data. While we saw heavy losses in the UK too, European stocks held up better with the DAX and the CAC40 both holding near highs. The Nikkei was unable to fight off pressure, however, with the index losing around 2.5% from mid-week highs, despite a broadly supportive March BOJ meeting which saw policy kept unchanged and Ueda confirmed as incoming BOJ chief.
GBP Rallies on GDP Beat
GBP has been the strongest performer over the European open on Friday, boosted by better-than-forecasts monthly GDP data. The UK economy was seen growing 0.3% in January, above the 0.1% reading the market was looking for. The services sector in particular saw a healthy rebound from December’s -0.8% reading, bouncing back to 0.5%.
JPY Falls on Dovish BOJ Meeting
JPY has been among the weaker performers so far today. Despite the risk-off tone, which typically supports JPY via increased safe-haven demand, the currency is weaker following the latest BOJ meeting. The last meeting for former BOJ governor Kuroda saw the bank holding policy unchanged with no signal of any likely shift in the near-term. With incoming Ueda having signalled a willingness to maintain policy for now, JPY remains weaker against other currencies being boosted by hawkish central bank expectations.
Gold Holds Up – Crude Crumbles
In the metals and commodities space, we’ve seen some disparity kicking over the last 24 hours with gold prices turning higher while silver prices remain pressured. Today’s US jobs data will be key for setting direction into next week with any fresh USD strength likely to see both metals turn lower again. Crude prices remain lower on Friday, continuing with the run of losses since Tuesday. Crude futures are now down around 7.2% from the week’s highs and look vulnerable to further losses today if USD moves higher.
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.
