Spreadex Market Update
Buffett’s Apple-interest pushes Dow Jones higher, whilst FTSE struggles despite Brent Crude crossing $49 per barrel
There was one very clear source of growth for the Dow Jones this afternoon, and it wasn’t the latest US economic data. The Empire State manufacturing index, the only notable number on the day’s agenda, vastly underperformed expectations, plunging from a 14 month high of 9.6 to a 3 month nadir of -9.0. Yet news that Warren Buffett’s Berkshire Hathaway took a $1 billion stake in Apple during its (miserable) first quarter helped lift the tech company by over 2.5%. As is the weight of Apple this upwards shift more than compensated for the weak manufacturing figure and, alongside the oil-inspired gains for the likes of ExxonMobil and Chevron, ensured the Dow opened nearly 90 points higher after the bell.
The FTSE couldn’t get anywhere near that level of growth as the day went on. Yet with Brent Crude crossing $49 per barrel for the first time since in 6 months, and its miners led on a merry-romp by the jubilant Lonmin, the FTSE finally managed to eke out a 5 point rise as the afternoon wore on.
It will be interesting to see if Tuesday brings about a bit more market excitement. Not only is the DAX back from its holidays, but the morning sees the release of the month’s UK inflation figures. Last month saw the metric hit 0.5% for the first time in over a year, the pre-EU referendum inspired fall in the pound helping to push it higher. This month analysts are expecting the reading to remain at that level, with the core figure at a similarly unchanged 1.5%.
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