Spreadex Market Update
Brexit fears, improving inflation-inspired stronger dollar and falling oil ensure week ends on a bum note
With US inflation crawling back to 0% after last month’s foray into negative territory, and the core CPI figure at its highest point (0.3%) in around 9 months, the dollar bounded ahead this Friday, pushing the pound and the euro lower whilst ensuring that the Dow started the day over 100 points in the red. Whilst it is unlikely that the Fed will do anything in March, the stronger than expected inflation figures still reignited those fears, reintroducing a bit of good news is bad news fun into the US markets.
Things were no better over in Europe. Though still on track for its best weekly performance since last October (which, in the context of how far it has fallen in 2016, isn’t actually that impressive) the FTSE couldn’t end the week on a high, falling by nearly 1% thanks to the double pressure of heightened Brexit fears (that are only being exacerbated by the continual negotiation delays in Brussels) AND Brent Crude’s fall towards $33 per barrel.
Taking the day’s overall bearish tone and running with it, the DAX dropped by nearly 150 points, with the CAC seeing its own notable 40 point decline as Friday began to wrap up. It seems that the Eurozone indices are just as susceptible to the Brexit concerns currently hurting the FTSE, with the (related) strong performance of the euro against the pound only making matters worse.
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