Spreadex Market Update
Bonds, Brexits, Grexits and US jobs data plays havoc with the markets
Missed targets for the latest JOLTS job openings figures failed to help the Dow or the dollar; so too comments from FOMC member John Williams, who stated that a rate hike ‘makes sense’ later in the year dependent on an improvement in the USA’s economic outlook. Of late such a dismal performance from the dollar would be catnip for Dow investors; however, issues of volatility in regards to US T-bonds and 10-years complicated matters and meant that the US markets were red across the board.
With German Bunds once again causing trouble on the bond markets, the Eurozone indices underwent their latest freefall after the ECOFIN meetings ended with little progress on the Greek saga and EU/British treaty reform fronts. In fact, French finance minister Michel Sapin said that Britain’s EU negotiations will have to wait until after the Greek saga is settled, in a Gaelic attempt to calm the ‘country prefix plus exit suffix’ storm that is brewing.
You would never imagine the fickle FTSE had undergone a surprising, but significant, election boost last week as the UK index plunged below 7000 once more. News from NIESR was unclear; a GDP rise to 0.4% from 0.3% implies growth, but the fact that the latter figure was downgraded from 0.6% muddies the picture. Regardless, the news hardly helped matters, and left the FTSE falling with its indices peers.
M&A fever shows no signs of slowing down, with Verizon the latest mega-company to wade into the marketplace with an eye to buy, as the communications company announced this afternoon it intends to purchase AOL for $4.4 billion. Whilst Verizon is trying to expand into the ‘internet of things’, the deal makes even more sense for AOL, whose market share of the digital advertising market was a pitiful 0.74% in 2014. In contrast, Facebook’s was 7.9% whilst Google’s was an increasingly Orwellian 31.4%. What is interesting is that AOL had only just received a ‘sell’ rating from Goldman Sachs, a rating that looks laughable now as AOL grew more than $8 to the $50 per share price offered by its impending Verizon overlords.
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.
