Spreadex Market Update
ComRes Brexit poll puts pressure on pound whilst FTSE falters following Brent Crude decline
As it has for much of March the FTSE spent the day walking the 6200 tightrope, a few jittery moments eventually turning into a full on fall as the index slipped around 20 points away from its earlier highs. Unsurprisingly the main culprit for the FTSE’s most recent failure to surge past 6200 was Brent Crude; with the US oil inventories almost nearly 4 times higher than the forecast 2.5 million barrels the commodity quickly below the $41 mark. This, of course, spurred on the already rocky set of oil and mining stocks to even greater losses, the latter sector already suffering under copper’s 2% decline.
Things were no better for sterling. A shrinking of the gap between the Remain and Leave Brexit campaigns in the latest poll from ComRes, which has the former at 48% and the latter at 41%, shook an already nervy pound this afternoon, the currency plunging nearly half a percent against the dollar whilst hitting a 2 year low against a basket of currencies (according to the Bank of England). All signs of the pound’s post-Fed performance last Thursday have been wiped away this week, first by Ian Duncan Smith’s resignation, and then by UK inflation-miss, this ComRes poll the latest in a string of price-eroding problems for the currency.
Elsewhere the DAX proved to be the most resilient index, holding onto a 25 point increase whilst its Eurozone peers, namely the CAC, saw widening losses. The Dow Jones, meanwhile, started the day 40 points in the red, a strong new home sales figure (at the expected 512k but with an upward revision for last month’s number) countered by Brent Crude’s decline.
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