Spreadex Market Update
UK wage growth falls ahead of this afternoon’s Budget
Ahead of George Osborne’s potentially final Budget the UK’s jobs data was fairly mixed. The unemployment rate remained at 5.7%, with the employment rate hitting its highest ever mark of 73.3% since comparable records began according to the ONS. However, and it’s a big however ahead of the post-Budget remarks, wage growth slowed once again, falling short of both last month’s figure and this month’s forecasts.
Labour have already commented stating that the average worker is £1600 a year worse off since the Conservative government came into power; unless Osborne unveils measures that deal with this, Ed Balls is sure to use this sound bite after the Budget statement is over. There are also rumours circulating that Osborne’s big surprise this Budget will be a raising of the National Insurance threshold, a voter-grabbing move that would join a similarly rumoured increase of personal allowance. Despite the uncertainty surrounding the Budget and the mixed nature of its data, the FTSE has continued to post gains; however, the pound fell sharply against the dollar following the wage-growth reveal, hitting a 5 year low.
Elsewhere, the US futures continue to look rather sickly as the morning has gone on, with investors clearly unhappy about the lack of clarity surrounding Yellen’s statement this evening. It looks like the US markets will ironically have to be patient to see whether that word is removed from the Federal Reserve’s comments later today.
Finally, with anti-austerity protests turning violent outside the ECB’s new, and very pricey, Frankfurt headquarters, the Eurozone had little data to work with this morning, leading the DAX to continue the heavy declines that began yesterday morning. The region will now be looking to positivity from the FTSE and US markets to drag it out of its post-record hangover.
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.
