Spreadex Market Update
Investors continue to abandon previously record-breaking indices
The increasing conflict in Yemen, lingering doubts over Greece’s finances, and the post-poor-data plunge of the US markets on Wednesday night have all contributed to an incredibly bearish atmosphere that the global indices are struggling to from recover from. The record breaking bubble seems to have finally fully burst after showing signs of weakness at the start of the weak.
Data-wise, the morning couldn’t have gone much better for the FTSE, with a big surge in UK retail sales being joined by better than expected CBI realized sales. However, with the current trading climate the way it is, this good news couldn’t make a dent in the FTSE’s precipitous losses, with that record-breaking 7000 level receding further into the background. Even the sustained strong performances by oil and copper couldn’t inspire any FTSE-saving growth in their respective sectors, leaving the UK index out to sea without a lifeboat in sight.
The Eurozone suffered even more than the FTSE this morning, despite similarly strong economic data for the region. The money supply across the Eurozone rose at its fastest rate in 6 years, joining that 13 year high German consumer climate number from this morning; yet just like the FTSE, no amount of good news could sway investors and the Eurozone indices continued to plummet further into the red.
With investor fear begetting more investor fear, the only hope for a turnaround this afternoon appears to be some kind of change in direction from the US markets. At the moment, the Dow Jones, the NASDAQ and the S&P are all deep in decline following yesterday’s disastrous data, and even the weakness this has inspired into the dollar failed to rescue the US markets. Hopes, then, are pinned on a strong US unemployment claims figure to change Thursday’s trading atmosphere; however, given the inconsistent nature of this figure in the past few weeks, this may be too much to ask.
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