Spreadex Market Update
Choppy morning for markets as European indices lurch between gains and losses
The lack of a consistent trading direction is likely a product of a market cocktail containing a dash of post-Fed statement confusion, a shot of lingering China-fear, and a sprinkling auto-sector sickness, a brew that leaves few economic anchors for investors to cling to.
The DAX is now down around 120 points, a stark contrast to the 100 point surge seen at its session highs following a better than expected German Ifo business climate figure. The index hasn’t been helped by the fact that the gains made by Volkswagen and Porsche following the resignation of Martin Winterkorn are being countered by losses for BMW, with the owner of Mini and Rolls-Royce Motor Cars (alongside, of course, its titular vehicle series) falling by around 5% as reports in the German press suggest that some of the company’s own cars exceed the emissions standards recently befouled by VW.
The FTSE, meanwhile, is still at the mercy of its mining stocks, sitting on the red side of the trading divide by around 25 points. Like the DAX the UK index did see some growth mid-morning, only for its gains to quickly dissipate in the markets’ choppy waters.
The US open is unlikely to change much this afternoon; the futures are suggesting a 60 point drop for the Dow, with core durable goods orders, jobless claims and new homes sales still to come. The biggest event of the day arguably doesn’t arrive until this evening, when a speech by Janet Yellen at the University of Massachusetts is set to be analysed (and over-analysed) for hints at the Federal Reserve’s movements going forwards, namely whether 2015 will bring with it a rate-hike or not.
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.
