Spreadex Market Update

Element of fatigue in the equity market



There is an element of fatigue in the equity market today, as negative data from the eurozone acted as the catalyst to send a flood of sell orders into the market. This isn’t helped, too, by quarter end approaching, commonly a time where money managers will cycle out of asset classes performing well – namely equities – and rebalance into other assets. But investors are showing signs of fatigue; the market is looking more fairly priced now that liquidity from the US is being withdrawn and earnings growth is tempering.

Here in London, the supermarkets are once again in focus. Sainsbury’s and Tesco’s are currently down by more than 4 percent on a continued surplus of supply to the markets of sell orders. Investors are today saying of the supermarkets that the rate at which earnings will change over time is increase to the downside. The shares of Tesco are looking to close below 200p.

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.