Spreadex Market Update
FTSE continues to fall as US looks to Yellen
It was an afternoon of missed and managed revisions for the US markets: the final GDP figure for the fourth quarter came in at 2.2%, failing to reach the upward revision analysts had forecast, ensuring that the US markets opened to a sour atmosphere. Things were improved somewhat by a better-than-expected revised University of Michigan consumer sentiment figure, causing the US markets to flatten as the day continued.
There could be further fireworks tonight, as Federal Reserve chair Janet Yellen, perhaps the most important figure in the current US financial climate, speaks on regulation. Since the US interest rate debate really came to the fore Yellen has been a big market mover, so her comments are sure to be scrutinised just before the US close.
Despite, or perhaps because of, the pound continuing its strong run after Mark Carney’s pro-rate hike comments this morning, the FTSE remained the market’s biggest loser this Friday, a far cry from last week’s record-breaking push. Further declines in copper, alongside the rest of the metal sector, caused a big headache for the FTSE’s mining stocks, whilst a retreat by oil harmed its respective sector. As has been shown so many times of late, if its commodity stocks are failing, then so too is the FTSE, exemplified by today’s dismal descent.
The Eurozone remained the bright spot in the worldwide markets, with the region puttering along to more gains whilst its peers continued to struggle. Unlike the dollar-stricken US markets, and the looming election nerves for the FTSE, the Eurozone always has the ol’ QE-trick up its sleeve; the success of this stimulus has compensated for any Greek debt worries and has allowed the region to regain its losses faster than the other global indices.
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