Spreadex Market Update
Fed fear infects markets as US open causes losses to intensify
As expected the US open merely added to the market misery this Friday, with Janet Yellen’s growth-doubting, China-fearing comments most relevant to American traders. This meant that the Dow Jones immediately fell over 200 points after the bell, fleeing Wednesday’s 4 week high (where at points it was tickling 17000) to instead dip below 16500. It seems that the worrying reality of the reasons why the Fed won’t raise rates is more powerful than the abstract concept of a delayed lift-off that had previously been pushing the US markets higher.
With Brent Crude and copper joining in with the Friday fun, the FTSE’s fall gradually reached the 100 point mark by the US open as it receded away from its own 4 week peak. The Eurozone, meanwhile, was a real bloodbath; the DAX, always a fan of terrifying lurches into the red, dropped by over 300 points whilst the CAC lopped off over 3% of its own price as the day went on.
Now that the anchor of the September FOMC meeting has been and gone, it is likely that that markets will struggle for any kind of firm direction going forwards, especially since next week doesn’t bring with it too much to provide any definitive guidance. The results of the Greek election on Monday will be an unwelcome, if brief, moment of volatility, whilst the final second quarter US GDP figure on Friday will likely just shed some more light on why the Fed was so dovish this Thursday than any hint as to what the central bank will do next.
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.
