Spreadex Market Update
Syriza victory sets up big battle for the Eurozone
However, the reaction from the markets was not as disastrous as it could have been. It appears that the strength of the QE reveal last week, and the lack of surprise at the Syriza victory, has allowed the Eurozone indices to tentatively continue the rally that began last week, including record highs for the DAX. In the immediacy of the election announcement the euro fell to fresh 11 year lows; however, assurances from Greek MPs that the country has no intention of leaving the currency union helped calm fears somewhat, and allowed the euro to regain some of its precipitous losses.
Yet market jitters are beginning to appear here and there as the full implications of a Syriza victory hit home. The Eurozone is now in the precarious situation of facing down a new Greek government that is gunning for economic revolution, and with Alexis Tspiras expected to make clear his plans later today, the markets still may be in for a shock when the extent of Syriza’s desired reforms is revealed.
Despite the FTSE being a beneficiary of the bullish-swell that occurred post-QE last week, falling commodities reared their ugly head once more and began to drag the UK index down in a familiar fashion. Brent Crude oil surrendered the $48 per barrel resistance level it clung on to last week, whilst copper continued the decline that restarted last Friday. With this weighing heavy on the energy and mining stocks that are such a huge part of the FTSE’s make-up, the index was off to a disappointing start to the week.
The wave of good feeling that had begun to spread through the US markets last week was dashed by disappointing flash manufacturing PMI and existing home sales on Friday. A quiet day for data means the US markets will be reliant on strong earnings releases from companies like Microsoft and Texas Instruments to reverse its fortunes this afternoon.
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.
