Spreadex Market Update
Markets struggle to recreate Wednesday’s blockbuster trading
The US markets continued to shed points after the bell, with its latest round of figures doing the Dow no favours. Weak trade balance, Philly Fed and most importantly jobless claims data all served to highlight why the Fed is right to be cautious. It also served to highlight the complex web of logic the US markets are operating on at the moment. Weak jobs equals delayed hike equals, in theory, happy markets. Yet as seen this afternoon, that hasn’t been the case. What hasn’t helped this situation has been the resurgence of the dollar; of late the greenback has shown Superman-like levels of invincibility as it kicked down the doors’ of the pound and the euro and took back yesterday’s losses.
In the run up to the EU economic summit progress and compromise appear to be dirty words. Neither Greece nor Germany has backed down from their respective positions, with Merkel telling reporters not to expect any solutions today. Though to be honest, it is perhaps a bit naïve of Merkel to think anyone was really expecting any solutions in the first place. Add in the leaked report that the Russia/Ukraine conflict will be high on the agenda, and the Eurozone has its perfect combination; a shower of volatile situations with a low chance of headway. In amidst all this, the Eurozone indices largely slipped back into the red as the targeted LTRO-inspired gains slowly dissipated in the face of investor apathy.
The FTSE largely followed the lead of the US and Eurozone, flitting between mild losses and even milder gains, as investors struggled to keep hold of the bullish sentiment created by yesterday’s budget. Despite this lifelessness, the FTSE’s energy stocks remained in the green, even if Brent Crude continues to flounder, with Premier Oil and Afren two of the day’s big winners.
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