Spreadex Market Update
Oil slides whilst Eurozone plays waiting game
As the Eurozone waited for something to happen, investors lacked faith in its leaders to enact any change in the short term, causing the markets to mope about the day flitting between losses and gains. This was compounded by the fact that Eurozone ministers have given themselves to next Monday to come up with a solution to the Greek-debt situation, further reducing the chances for decisive comments this week. The Eurozone has moved at a glacial pace of late in regards to its key decisions, and the constant stagnation in the region is draining the markets.
This Wednesday has been one of the quieter days of New Year, as the Eurozone enters the eye of the storm before news begins to leak of the meeting this evening. With the euro suffering against both the pound and the dollar, gold continued to be a peripheral victim of the Eurozone’s issues, sinking to $1223 per ounce as the greenback grew in strength.
The FTSE couldn’t shake off the negative trend that set in this morning, with both Premier Oil and Tullow Oil suffering as Brent Crude continued today’s slide, reaching $54 per barrel as US crude oil inventories came in higher than expected at 4.9 million barrels. Strong performances from TeleCity Group and Redrow failed to negate these issues and once again the FTSE became enslaved to its oil stocks.
Over in the USA, Europe continued to waft its bad energy across the Atlantic; today has had little to distract from the waiting game Europe is currently playing, and this uncertainty has bred the global bearish sentiment that is dragging down the markets. There were positives for PepsiCo, which not only best analysts’ expectations but thoroughly outshone its main rival, and industry leader, Coca-Cola due to its successful snack sector; however it became the latest company to be hit by the USA’s dominant currency as its revenues fell 1% quarter-on-quarter due to the strength of the dollar. This evening will see Tesla announce its Q4 2014, and with reports suggesting that the company only managed to sell 120 cars in China during January, investors will be looking at comments on its overseas business carefully.
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