Spreadex Market Update
Robust European open following rate-hike hinting speech from Janet Yellen
In regards to the week’s headline-hogging story, the latest rebound from the auto-stocks, with Volkswagen, Porsche, Daimler and BMW all posting decent gains, has helped with Friday’s shift in sentiment, even if beyond the markets the sector may still be in trouble.
More important was Janet Yellen’s speech at the University of Massachusetts last night. The Fed chair appeared to provide a bit of much needed clarity, claiming that he majority of the Federal Open Market Committee, including Yellen, expect a 2015 lift-off. This leaves the announcement of a rate-hike in October or December on the cards, providing the kind of future anchoring event for the markets they have been sorely lacking this week.
There was also a superb fiscal first quarter earnings release from Nike after hours last night, with the company posting $8.41 billion in revenue against the $8.22 billion expected, alongside EPS of $1.34 against the $1.19 forecast. Whilst not all multinationals have the current form of the sports mega-brand, it does perhaps suggest that the impact of China on the coming earnings season might not be as harsh as first expected, a market lifting factor potentially contributing to this morning’s strong open.
All this translated to a 100 point jump for the FTSE and the CAC, whilst the DAX, which at points yesterday was hovering perilously near a fresh 2015 nadir, surged over 200 points due to its exposure to the rising auto-stocks. This still currently leaves the European indices down on the week, following a helter-skelter few days of trading that has seen the markets lurch between jubilant gains and severe losses almost on a whim. Yet they have opened Friday, at least, facing the right direction – now all they have to do is hold onto their growth until the end of the day…
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.
