Spreadex Market Update
China-inspired confidence continues as FTSE holds above 6300; US retail sales and PPI to come
For the last month and a half the FTSE has lacked a true catalyst for growth, something those Chinese export figures provided in bucketloads. The UK index’s main fuel came from its miners, Anglo American leading the charge with a near 7%-plus jump, taking the increasingly less-ropey-looking firm to a fresh 6 month high. Even the commodities themselves are beginning to edge higher after rather reticent start, Brent Crude dipping its toes over $44 per barrel with copper, so sickly since the end of March, clawing its way back above $2.15 per pound.
It wasn’t only the FTSE benefited from investors’ China-inspired confidence. The DAX and CAC both surged between 2% and 2.5%, the former approaching the 10000 mark for the first time since the month began. It wasn’t all good news for the Eurozone, however; whilst investors basked in the glow of that 11% surge in Chinese exports the region’s industrial production took a bit of a dive, plunging to -0.8% from last month’s downward-revised 1.9%. Not that it really mattered, the market firmly focused on the day’s dispatches from Asia.
Now the big question is can the Dow Jones match Europe’s early enthusiasm? So far the index’s futures look slightly more tentative than the likes of the FTSE and the DAX, though with a near 90 point rise on the cards the Dow Jones would still be sent back over the 17800 mark it abandoned at the start of April. Before that climb can be confirmed, however, the US index has to deal with the day’s PPI and retail sales figures. The former is expected to bounce back to 0.3% from last month’s -0.2%, whilst the latter should also crawl out of negative territory, from -0.1% to 0.1%.
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