Spreadex Market Update
Eurogroup meeting draws focus
A vote of confidence from their own government is all well and good, but after last week’s progress-less dry run, tonight is the true first step for Syriza on what could be a long road to recovery not only for Greece, but for the health and stability of the Eurozone. Contradictory rumours yesterday either denied or confirmed a 6-month bridge plan; today will see the truth behind these claims. What this means for the markets is much of the same, at least for the time being; yesterday saw the Eurozone indices recover the losses from Monday, but this growth was largely based on hearsay. With the meeting later today, a similar stream of unconfirmed reports is likely to leak out and lead the markets as the morning continues.
Issues with oil and a mixed morning for key stocks led the FTSE lower at open. The record £5.1 billion deal between Sky and BT Sport, with the former paying nearly £4.2 billion of that figure, saw two very different reactions on the markets; Sky suffered as investors baulked at the price the company was forced to pay, whilst BT’s stocks rose on its savvy, and pricey, blow to its main rival. In the war for TV football domination, BT has definitely won this battle, forcing Sky’s hand due to the importance football plays in Sky’s business plan. However despite BT’s gains, the falls by Poundland, Thomas Cook, Tullow Oil, Indivior and the aforementioned Sky meant the FTSE got off to another lifeless start.
Brent crude closed below $57 per barrel last night and kept slipping as Wednesday morning continued as Tullow Oil became the latest victim of oil’s long decline. This is a bad sign ahead of another round of US crude oil inventories, with the last 3 weeks’ figures showing incredibly high output; whilst oil has dealt with these figures well for the past few weeks, if the announcement catches the commodity on an already downward trajectory oil could be in for bigger losses.
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