Spreadex Market Update
Meek trading continues this Monday, as pound sees Duncan-Smith inspired tremors ahead of Tuesday’s UK inflation data
With a sharp fall in existing home sales (from 5.47 million to 5.08 million month-on-month) leaving the figure at its lowest level since last November, there was no real impetus for excitement from the Dow this Monday, the index veering between a 15 point loss and a mild 10 point increase as the afternoon got underway. And that’s effectively it for the US session, trading now likely to be dictated by that most perilous and vague of notions: investor sentiment. The Dow is, however, still at its 2016 highs, March set to be one of the index’s best months in a while.
Once again trickling into the red it was a meek Monday from the FTSE, the largely loss-filled nature of its commodity stocks ruling out much in the way of growth as the afternoon continued. The more interesting action this Monday came from the pound’s tremulous performance, the currency flitting about as investors tried to process what Ian Duncan-Smith’s dramatic resignation means for the Brexit referendum in June. Sterling is set to get even more of a workout tomorrow morning, as the UK’s latest inflation figures are released; analysts are expecting a 14 month high of 0.4%, something that may well see cable reach the levels it touched in the aftermath of last week’s Federal Reserve/Bank of England double feature.
The Eurozone indices were just as limp as the FTSE this afternoon, the DAX fairly flat with the CAC slipping by 0.5%. Neither index was helped by the worst region-wide consumer confidence figure since December 2014, a miserable fact exacerbated by comments from Jens Weidmann, the Bundesbank chief moving to counter Peter Praet’s market-lifting statement last week that ‘helicopter money’ could potentially be used to boost the Eurozone. At least tomorrow sees things pick up, a wave of flash manufacturing and services PMIs set to give investors plenty to mull over before the month ends.
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