Spreadex Market Update
FTSE and Dow Jones tentative ahead of Bank of England rate vote and US inflation reading
Edging up to 6360 after flirting with a fall for much of the morning the FTSE continued to feel the weight of its commodity stocks this Thursday, both the oil and mining sectors slipping back following yesterday’s China-inspired surge. Of course the looming Bank of England rate vote partially explains investors’ current reticent to send the UK index any higher. For whilst no one expects the central bank to do anything but announce unchanged interest rates of 0.5%, the tone of its statement, and the formation of its voters, could dictate sentiment as the afternoon gets underway.
Whilst the FTSE waited the Eurozone indices began to build on yesterday’s explosive growth, aided by the news that the region’s inflation reading had ticked out of negative territory to come in at an admittedly unimpressive 0.0%. This left the DAX and CAC free to post 0.4% and 0.3% gains respectively, the former cementing its post-10000 push in the process.
Like the FTSE it seems US investors are fairly nervous this Thursday, waiting for the latest inflation reading before making any sudden movements. That still, however, leaves the Dow Jones at a fresh 2016 peak of 17900, around 450 points away from the all-time highs its saw last May. Whether or not the index continues to climb towards that level, for this Thursday at least, will likely be decided by the state of the inflation figure; expected at 0.2% from last month’s-0.2% investors may actually end up being spooked by the recovery, which could push the Fed further towards a rate hike in June or July.
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.
