Spreadex Market Update
UK borrowing miss and retail sales plunge sends FTSE lower; DAX and CAC nervy ahead of ECB meeting
Despite Brent Crude now crossing $46 per barrel (a staggering recovery considering how violent the initial reaction to Monday’s Doha disappointment was), ensuring a perky morning for its commodity stocks, the FTSE was the morning’s biggest faller, slipping by nearly 60 points to duck under the 6400 mark. A double dose of dismal data was responsible for the index’s slide, with retail sales plunging to -1.3% (nearing those post-Christmas lows) and the UK’s borrowing figures overshooting George Osborne’s targets by £2 billion (to £74 billion) for the 2015/16 financial year.
Joining the FTSE in the red, the DAX and CAC both abandoned their early gains to fall by 0.6% and 0.8% respectively with investors getting a case of the pre-ECB wobbles. It will be interesting to see how the region reacts to Draghi’s speech; the central bank president’s way with words can have a remarkable effect on the Eurozone indices, though he will likely find himself in a tough spot when he is undoubtedly grilled over the possibility of even deeper negative interest rates and airlifted in ‘helicopter’ money.
Crossing the 18100 mark by yesterday’s close the Dow Jones looks set to build on its astonishingly strong recent run, the futures promising a 15 to 25 point jump after the bell. With most of the afternoon’s focus on the Eurozone the US markets don’t have much to chew on this Thursday, the usual jobless claims figures (set to rise away from last week’s 42-year low) joined by the latest Philly Fed manufacturing index (expected to slip to 8.1 from last month’s 12.4).
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