Spreadex Market Update
Greek/German stagnation drags Eurozone down
Yet lukewarm is enough for the FTSE at the moment; like the DAX earlier in the year, even the smallest of daily gains now is likely to push the UK index into record highs.
Most of the positives for the UK index this afternoon came from its oil and mining sectors; Vedanta Resources saw big gains as copper held onto the near 7% upswing it has seen since last Thursday. Meanwhile the latest rebound in oil allowed the volatile oil stocks a moments rest before the next inevitable decline; today the big winners were Cairn Energy and Petrofac, which spent the day in the green following Brent Crude’s rally.
However, whilst the FTSE remains circling new records, the pound spent the day suffering against the dollar. Unlike the euro, which has gained some mild-resilience as the freshness of ECB QE recedes into the background, the looming, and incredibly uncertain, election is causing sterling new woes, something sure to increase throughout April.
In his European Parliament testimony, Draghi claimed that Eurozone inflation is expected to rise to 1.5% in 2016, whilst cheap oil and the weak euro continue to help the region’s recovery. On the Greek issue Draghi largely towed the Eurogroup line, stating that signs of real, and specific, reforms are needed before more money will be made available. The current Greek-debt stagnation, something unlikely to really change by the end of the day, left the Eurozone indices flailing to more losses. Yet despite the Eurozone’s declines, or indeed because of it, the euro has taken plenty back from the dollar today, and is on track to close at its best price since it collapsed after the implementation of ECB QE.
There was little to write home about the US market’s Monday afternoon, with only a slightly improved, but still troubling, existing home sales figure to tide investors over. Yet the Dow Jones still saw growth, maintaining its post-18100 level without having to do much else. The US markets as a whole appear to be coasting on the fact that the dollar spent the day struggling against the euro; as has been the trend of late, bad news for the greenback inspires growth in the markets, however mild.
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.
