Spreadex Market Update
DAX hangover causes index to give back Monday’s gains
With the German ZEW economic sentiment missing its targets despite beating last month’s figure, alongside better than expected ZEW figures for the region as a whole and the confirmation of the expected decline in inflation for February, the Eurozone failed to provide its indices with the hangover cure they needed. This has led the DAX to give back the majority of Monday’s gains, with a similar situation elsewhere in the region.
This flurry of economic news has taken place in front of the near-permanent backdrop of German-Greek discord, with more discussion over Varoufakis’ alleged middle-finger salute and Wolfgang Schauble accusing Athens to destroying trust between the two nations. With Morgan Stanley putting the chances of a ‘Grexit’ at 25% for the next 6 months, and a Bank of England advisor claiming its ‘unrealistic’ to expect Greece to repay all its debts, the Eurozone can look forward to this issue casting its shadow over the region for the next few months at the very least.
As the Eurozone gave up much of Monday’s progress, the FTSE managed to let its morning growth slip through its fingers. Losses for Tesco, Antofagasta and the FTSE100’s newest member Hikma Pharmaceuticals ate into the UK index’s gains, alongside the bearish sentiment from Europe spooking investors. However there is a silver lining: so far the FTSE’s oil sector has managed to resist falling into declines despite the latest collapse from Brent Crude, with BP, Tullow Oil and Premier Oil still up for the day.
The US futures are looking jittery ahead of the Federal Reserve’s statement tomorrow, with investors undecided on the predictability of Yellen’s announcement tomorrow. With only building permits and housing starts, the latter likely to reflect the disappointing NAHB housing market index figure from yesterday, the US markets look set to be dominated by hypothetical interest rate-chatter until after the main event on Wednesday evening.
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.
