Spreadex Market Update
FTSE reaches new records, DAX reverses mid-week slump
The FTSE closed at record highs on Thursday night, and brought that upward swing into play this morning. Briefly touching 6988 before falling away, the UK index is hair-raisingly close to crossing the 7000 mark but faces an unfriendly, and sparse, economic landscape this Friday, where the biggest news is likely to be the ongoing, and all too familiar, stand-off between Greece and its creditors.
If the FTSE is to reach this psychological landmark, then it will be reliant on certain key stocks. Since George Osborne’s announcement of hefty North Sea tax cuts, the FTSE’s oil sector has been in robust health despite the commodity’s current fluctuations; the FTSE’s chances of reaching fresh highs will be severely damaged with any downturn in this area, and has already been hit this morning by a change in direction by Premier Oil and BP. The UK index will also want to see the continued growth of Shire Pharmaceuticals and TSB Banking; the former is rumoured to be making a move for Ironwood Pharma, whilst the latter has confirmed its £1.7 billion takeover by Spain’s Sabadell.
Over in the Eurozone, a super-sized EU meeting over Greece’s financial crisis yielded little change, with the country’s creditors merely reaffirming that they need to see a firmer list of reforms before Greece can receive any kind of cash injection. This broken Greek record couldn’t prevent the DAX from stalling its losses, as the German index opened higher for the first day since Monday.
Finally, with another set of weak data once again arriving on American shores, the US markets resumed their declines, with the Dow Jones falling below 18000. Whilst the US futures are pointing to a decent open, if the dollar begins to open up more ground against the pound and the euro following yesterday’s hit and run, the US markets may be in line for a shaky end to the week.
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