Spreadex Market Update
IMF and Lagarde join Carney in warning of post-Brexit shock
The FTSE maintained its half a percent drop this morning, the index now having the added weight of a dramatic decline in construction output (which fell a whopping 3.6% month-on-month) and yet another Brexit warning, this time from Christine Lagarde and the IMF. The International Monetary Fund chief arguably went even further than Mark Carney did yesterday, stating that ‘a stock market crash and steep fall in house prices’ could follow a victory for Vote Leave, whilst reminding the market that the issue has global ramifications despite the domestically-framed nature of the debate.
In contrast to the UK index the Eurozone actually managed to shrink its losses this Friday, the DAX now down a mere 0.2%, with the CAC falling 0.5%. This despite news that the region’s first quarter growth had been revised down from 0.6% to 0.5%, news that likely helped offset any goodwill gained from Germany’s better than forecast GDP reading.
Looking to the US open and the Dow Jones is expected to continue yesterday’s decline, the futures pointing to an 80 point fall after the bell. If the Dow is to avoid this drop then the afternoon’s data will have to buck the recent US trend. Sadly that looks unlikely, with retail sales set to remain in negative territory at -0.3%. The preliminary UoM consumer sentiment figure, meanwhile, is expected at 89.9, but with last month’s data already revised down to 89.0.
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.
