Spreadex Market Update
Dow and DAX duke it out for top-dog status this Monday afternoon
The Dow Jones, not wanting to be outdone by its German cousin, is once more close to the 18000 level it fell away from over the course of last week. The latest piece of wisdom surrounding the US markets is that the most recent round of weak results, with the Empire State manufacturing and NAHB housing market indices both falling from last month’s figures and industrial production making marginal gains whilst missing its forecasts, will further muddy the date of the Fed’s interest rate hike and, for now, prevent the dollar from soaring even further. The dollar has struck terror in the hearts the USA’s multinational companies following a greenback-plagued earnings season, and the fact that the currency slipped on this round of disappointing data has buoyed the markets ahead of the Fed’s meeting later in the week.
Like the Dow, the DAX had no reservations about crossing the 200 point gains mark and has continued to reach fresh records at an astonishing rate, pushed on even further by the ECB’s announcement it spent €9.751 billion in its first week of full-blown QE. Nothing could dampen the mood in the Eurozone, despite the usual issues surrounding Greek-German relations and what this would mean for Greece’s position in the currency union eating up column inches, with the rest of the region’s indices joining the German index on its rapid climb.
Always the bridesmaid never the bride, the FTSE remained in the shadow of its US and continental peers, posting gains much lower than those found elsewhere around the globe. The main reason for its lesser growth is the usual scourge of the UK index: oil. Brent Crude has slipped to $53 per barrel, nearly a $10 drop in around 10 days, dragging with it the FTSE’s significant oil sector. Given the precipitous falls oil is undergoing, it is remarkable that the FTSE has managed the level of gains it has, even if they once again fail to match the DAX and the Dow.
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