Spreadex Market Update
Another piece of US data, another miss; leaked (or fake) Juncker proposal suggests progress
The latest piece of US data saw the NAHB housing market index miss its targets, in yet another sign that US economy appears far from recovery the Federal Reserve wants to see. However, due to the dollar/rate hike complications, the reaction to each piece of data, good or bad, can vary so dramatically that regardless of their record levels these highs feel based on increasingly shaky ground, even if this uncertainty isn’t manifesting itself in as dramatic a style as it is over in the Eurozone.
A Greek leak, (sort of) denied by the EU Commission, is suggesting that Jean-Claude Juncker has proposed a new deal to inspire a much needed breakthrough, with concessions made towards primary budget surplus targets and a review of Greece’s collective bargaining agreements whilst remaining firm on the implementation of the ENFIA property tax, a sticking point for many involved on both sides of the Greek divide.
If accepted, this deal would require Greece’s creditors to hand over €1.8 billion in loans alongside the €1.9 billion in profits the ECB has made on its Greek bonds. The deal Juncker has proposed would appear to favour Greece over its creditors (if anyone can actually claim to be a winner in this issue anymore), something that may prove problematic. Nevertheless, this news, and the very concept of progress however unlikely, has buoyed the Eurozone indices, which were already benefiting from notable losses for the euro-dollar.
The FTSE went the way of the Dow, not DAX, this afternoon; this meant that the UK index lay limp across the trading room floor adding nothing to an already painfully quiet Monday. Things in theory be a bit more interesting on Tuesday, as the UK prepares to test the markets’ appetite for yet another low inflation (or is that deflation?) figure.
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.
