Spreadex Market Update
Talk of Greek ‘Plan B’ sends markets tumbling
News that EU officials were now seriously considering ‘Plan B’, i.e. a Greek default, sent ripples of negativity through an already sinking market as investors were once against spooked by the chances of a Grexit. The DAX is now roughly where it was at the start of the week: looking at the spike on Thursday things could be a lot better; looking at the lows on Tuesday it could be a lot worse.
In telling news, polls came out today showing that the majority of Germans would now rather a Greek exit, a big swing considering in January the majority wanted to keep them in; whilst these kinds of surveys aren’t representative of what will actually happen, it does act as a rather neat microcosm of the journey of alienation Greece has put itself on in the past few months. With the Eurogroup meeting next Thursday this broken record is guaranteed to continue; it will be interesting to see how long it can play on before the record is turned off and thrown in the bin.
With the Greek situation dragging everything down with its mucky hands, the US markets also had to endure another set of positive data that saw a better than expected PPI figure alongside a very strong preliminary UoM consumer sentiment number. This hawk-boosting news, coming off the back of that muscular non-farm figure this time last week, gave the Dow a rate-hike and dollar-strength fearing headache, and pushed it back below the 18000 level it had only just re-crossed on Wednesday.
Of course, where the Eurozone goes the FTSE follows, and with notable losses for Shell and BP representative of the rest of the oil sector, the UK index sank back to where it was on Monday. Hopefully next week should bring with its slightly more UK-inspired FTSE movements, as the latest inflation figures are revealed on Tuesday, with a flurry of jobs data released on Wednesday and retail sales on Thursday. The FTSE could do with a string of positive figures to shake it from its Eurozone dependency, so it will be interesting to see whether it gets what it needs.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
