Spreadex Market Update
Sickly manufacturing sector prevents FTSE from posting growth
Although in March both figures jumped out of negative territory to (the lower than expected) 0.1% and 0.3% respectively, with the added bonus of upward-revisions to February’s data, that still leaves the UK economy looking at a rather disastrous first quarter. For January to March manufacturing shrunk by 0.4% compared to Q4 2015, with industrial production falling by the same amount. Even more ominously the sector saw its biggest annual drop since 2013 in March, dropping by a whopping 1.9% year-on-year. The news didn’t cause any major crisis for the FTSE, which maintained a 0.1% fall, but it did put another obstacle in the way of the UK index if it wants to post any growth this Wednesday.
Whilst the FTSE trudged along with little drama the Eurozone indices continued to shed their post-Eurogroup gains, the DAX and CAC dropping by 0.5% and 0.7% respectively. Investors are perhaps calming down after getting a bit over-excited following the renewed hopes that a Greek tragedy can be averted, the long list of that still need to be achieved before May 24th, alongside a series of negative dispatches over the Eurozone’s own manufacturing situation, tempering the region’s enthusiasm.
The Dow Jones looks set to match its European peers’ limpness this afternoon, the futures pointing to a near 80 point fall at the open. The US index had managed to climb back above 17900 during Tuesday’s session, but with nothing on its economic agenda the Dow may struggle to hit that level this Wednesday.
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