Spreadex Market Update
Market panic intensifies as Chinese manufacturing slowdown continues
The worst August reading for the Caixin flash manufacturing PMI for 6 years meant the markets were greeted by some gruesome declines at the open. Of course, the commodities took a big hit following the latest Chinese growth slump, with both Brent Crude and copper likely to fall beyond their recent lows during Friday’s trading. This left the majority of the FTSE’s oil and mining stocks drowning in losses as the day began, with the UK index itself barely keepings its head above the new 2015 nadir waters. News of a public sector net borrowing surplus could help mitigate some of the FTSE’s losses later in the morning, but investors probably shouldn’t hold their breath.
If the FTSE was bad then the Eurozone was worse, with the DAX stretching off and posting some more of its trademark 3 digit losses immediately after the bell. Things were in no way helped by weak Gfk German consumer climate and French services and manufacturing figures, with more PMI misses expected across the region. Add onto this Thursday’s announcement of a September 20th Greek election, plunging the country back into uncertain territory just as the arduous Greek saga was ostensibly over, and investors are struggling to find a single reason not to continue to bail on the region.
Oh, and if things weren’t dicey enough already, North Korea has put troops on ‘war footing’ against its Southern sibling after artillery fire was traded between the two nations on Thursday. So, all in all a pretty great start to Friday.
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