Spreadex Market Update
European markets gloomy ahead of Fed-filled afternoon
With copper now falling to fresh 2015 lows it is unsurprising that the UK’s mining sector had a typically terrible morning, with heavy losses across the board. Combine this with Rolls-Royce’s post-profit warning cliff dive (increasing its losses to 20% on the day) and the FTSE stood little chance of maintaining the flatness it displayed at the start of the day, falling by 35 points to around a 6 week nadir.
The Eurozone wasn’t much better; the DAX and CAC both dropped by around 40 points as the day went on, with the euro tumbling to a fresh 7 month low after a surprisingly negative speech from Mario Draghi that highlighted the ‘downside risks’ to the Eurozone’s economic health, specifically its ‘inflation dynamics’. Add on top of that a worse than expected region-wide industrial production figure and Thursday’s gloomy goings on had plenty of reason to continue.
Whilst the American sessions brings with it the usual jobless claims and JOLTS job openings, the afternoon’s main attraction is the cavalcade of conferences involving FOMC members. Vice-chair Stanley Fischer, the (traditionally) dovish Charles Evans and resident super-hawk Jeffrey Lacker all speak throughout the day and are sure to produce something noteworthy between them. More important, however, will be the speech from Janet Yellen; following last week’s knock-out non-farm report the chances of a December rate-hike appeared to sharply increase, so investors will be desperate for any insight into the central bank’s current mind-set from the often elusive Fed chair.
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