Spreadex Market Update
Greek issue continues to suffocate investor appetite as Eurogroup meeting gets under way
The lack of news coupled with the hopeless tone struck by many before the Eurogroup meeting began has left the Eurozone indices a limp shade of red as the morning went on. The Athens Stock Exchange was the biggest loser of the day, slipping to a 3 year low as investors flee the increasingly risky region. Reports that the ECB and European Commission are drafting a ‘statement’ on the issue of Greek debt relief failed to do much for the markets given a) the vagueness of that concept and b) the sheer number of reports, rumours and rubbish that has surrounded this issue already.
Of course, with the Eurozone failing to do much of anything this morning there was little hope for the FTSE, even with a (slightly) better than expected retail sales figure. It may not have returned to the lows it immediately saw at the start of the day, but it is hardly setting the world on fire either.
The lack of real surprise from the Federal Reserve last night was captured on the US markets, with the Dow Jones barely having moved on the day come closing time. The central bank suggested that a rate hike should happen this year, with September still the much-touted first hike date; however, Yellen stated that ‘further improvement in the labour market conditions’ is required, whilst affirming that in the ‘mid-term’ US inflation should reach the 2% target.
Both of these aims should be tested this afternoon, with the latest CPI figures alongside this week’s jobless claims; the former is forecast to increase to 0.5% from 0.1% last month, whilst the latter is expected to be relatively flat for a 3rd week in a row. Meanwhile, this morning’s dollar weakness, following that less-than-hawkish Fed statement, is allowing the US futures to post mild gains before the open, with gold also benefiting from the greenback’s tumble.
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.
