Spreadex Market Update
Investors’ fears return in full force as awful Asian session inspires heavy losses in Europe
With Brent Crude once again threatening the $30 per barrel mark the FTSE immediately fell over 2% this morning, sending it below 5600 in the process. The commodity sector, as it has been for such a long time now, was the main drag this Thursday, with Rio Tinto leading the losses. The mining giant, the first of the sector to report its full year figures, announced a 51% nose-dive in annual profits whilst, arguably more damningly, announcing that it is ‘no longer appropriate to maintain [its] progressive dividend policy’. This, unsurprisingly, inspired the latest set of alarming losses in the UK mining stocks, Rio itself plunging over 8% (in a swift rebuttal to the rather overenthusiastic weak-dollar inspired gains seen this time last week).
Turning to the Eurozone and things were just as bad this Thursday, the DAX and CAC dropping 2% and 2.4% respectively, the former hurt by Deutsche Bank’s 5% fall with the latter dipping below 4000 as the day got underway. Returning to the same suffocatingly sparse-calendar that plagued the start of the week, the day’s main event (beyond a Yellen-repeat in front of Congress this afternoon) is likely the Eurogroup meetings, with the region’s finance ministers set to discuss the continual hot potato that is the most recent Greek bailout.
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