Spreadex Market Update
Commodity bloodbath sends FTSE to 10 and a half week low
With BP and Shell down by around 5%, and the entire mining sector a gory shade of red (including a fresh all-time low approaching 8% fall by Anglo American) the FTSE didn’t stand a chance this Friday, dropping a whopping 125 points to a 10 and a half week low. It’s the first time the UK index has been below 6000 since the end of September and marks the end of one of the worst weeks for the commodity-laden index in an already trouble-filled 2015. What is worrying is that this weekend brings with it the latest Chinese industrial production data, the kind of figure that, if it underperforms expectations, may only help escalate this current commodity collapse.
The Dow dropped by around 230 points this Friday, both intensifying the damage in Europe and adding extra fuel to Brent Crude’s decline as its own commodity giants Chevron and ExxonMobil suffered heavy losses at the open. Not helping matters was a 5% drop for Du Pont, investors apparently displeased at the value of the company’s $130 billion merger with Dow Chemical (reports of which had initially lifted the stock earlier in the week).
If anything better than expected retail sales and a solid consumer sentiment figure only made matters worse in for the US markets this afternoon, investors not in the mood for a reminder that next week brings with it an almost guaranteed US rate hike.
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