Spreadex Market Update
Markets Tumble on Hawkish Central Bank Comments & Recession Fears
Equities Foiled By Central Bank Comments
Equities markets were lower across the board yesterday. Hawkish central bank comments and global recessionary fears were the main factors driving price action. Stocks even fell in the UK despite BOE governor Bailey offering reassurance that the UK economy had turned a corner, with the worst now behind it. However, we are seeing a better start for stocks today though sentiment remains heavy on the back of yesterday’s losses.
Netflix Posts Poor Earnings
The US earnings season is also part of the reason behind the decline we’re seeing in stocks. Yesterday saw Netflix posting a dismal set of Q4 results, along with news that Microsoft is to lay off around 10,000 workers. Both sets of news were well reflected in the decline we saw in the Nasdaq which is now down more than 3% from the earlier highs of the week.
Risk FX Rebounding
A better tone to risk appetite across the European open on Friday has seen risk currencies pushing higher. Both AUD and NZD are pushing higher while safe-haven currencies have been the weaker performers. AUDUSD is around 0.5% higher on the day though the pair is still down from the weekly highs for now.
GBP Falls on Retail Sales Miss
In the UK, GBP has come under pressure following a negative set of UK retail sales data for December. Looking at today’s session, traders will now turn their attention to Canadian Retail Sales along with further comments from ECB’s Lagarde who speaks again today.
Metals & Oil Push Higher
In the metals and commodities space, gold and silver have turned higher into the end of the week supported by muted action in the Dollar and falling equities prices. Gold has broken out to fresh highs on the year while silver is pushing up against a key resistance level. Crude oil prices continue to push higher also, despite the EIA yesterday reporting a further large inventories surplus of over 8 million barrels.
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.
