Spreadex Market Update
Greece on G20 agenda, IMF down on UK forecasts
As Varoufakis looks to meet Obama in Washington, it is looking increasingly likely that the Eurozone is preparing itself not for compromise and a stimulus-based solution to this Greek saga, but instead readying itself for a Greek default.
Wolfgang Schauble, ever the situation’s cheeriest participant, stated that ‘nobody expects that there will be a solution’ at the next Eurogroup meeting, apparently capturing the mood around the globe that also included a credit downgrading for Greece by Standard & Poor. After they had strived throughout Wednesday to post gains, the Eurozone markets eventually succumbed to their downward trend, and the return of Greece to the forefront lead to a troublesome open for the region’s indices.
As the Greece issue continues to simmer, there was some UK specific news to damage the FTSE’s open. The IMF is unconvinced by Osborne’s deficit reduction plan, claiming that the Chancellor’s £7 billion surplus at the end of the next parliament would instead by a deficit of the same amount. The likelihood of lower tax receipts and the worry that the current election uncertainty is only going to increase after May 7th fuelled this dour prediction by the financial organisation.
Unsurprisingly this disappointingly forecast into the UK’s economic future prevented the FTSE from pushing on with its record-breaking run after the bell. This despite Brent crude trading at just below $63 per barrel after the latest US crude oil inventories finally gave the commodity a break. The boost this gave the oil stocks, already performing strongly this week, couldn’t make up for the disappointing projections put forward by the IMF with the FTSE’s losses widening as the morning continued.
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.
