Spreadex Market Update
FTSE lifted by Lloyds ahead of Q4 GDP reading, whilst Rio Tinto and Premier Oil lag positive commodity peers
Despite Brent Crude losing some of yesterday’s last minute growth after the bell, tumbling back below the $34 per barrel mark, the FTSE is seeing a relatively sustained surge form its commodity sector, Rio Tinto (dropping 2% thanks to a credit rating downgrade from Moody’s) and Premier Oil (falling nearly 8% after revealing its pre-tax losses had more than doubled to $829.6 million in 2015) the only notable outliers. That has helped the UK index recover most of yesterday’s losses, rising around 100 points ahead of this morning’s (likely unchanged) second estimate Q4 GDP reading.
The FTSE was also lent a helping hand from its banking sector this morning, led, namely, by Lloyds. Jumping nearly 10% the bank pulled off a bit a coup this Thursday; despite having to cough up £2.1 billion in PPI compensation in the fourth quarter (taking its total payout to a staggering £16 billion) Lloyds still announced a £2 billion dividend, news that more than helped investors ignore the unsavoury aspects of the bank’s full year report.
Like their UK peer the Eurozone indices saw a healthy rebound this morning; interestingly, however, and despite a slightly better than expected German Gfk consumer climate figure, the DAX is dragging its French counterpart, the CAC jumping 1.5% to the former’s 0.9%. Still to come is the final reading for the region-wide inflation figure, expected unchanged at a 15 month high of 0.4%; any negative movement around this number could, however, see the indices lift higher as investors get pumped up for some potential ECB stimulus in March.
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