Spreadex Market Update
Lifeless markets wait for US Fed statement tonight
Following the first murmurs of actual governance from the newly-anointed Alexis Tspiras, Greek banks were seriously spooked, having their worst day ever on the markets. In reaction to this news the DAX, which has spent the morning shedding points after Greece’s anti-austerity cabinet solidified itself, began to rebound as the day went on. It appears there are those who are rather pleased by this banking collapse, as it gives more leverage to those Eurozone members, i.e. Germany, who would like to keep Syriza in line.
If today has been relatively quiet, tomorrow may see a new influx of volatility into the Eurozone as Italy looks to elect a new president. Despite being overshadowed by the situation in Greece, Italian politics are their usual turbulent self, with Prime Minister Renzi is currently caught between trying to appease his own party whilst keeping Berlusconi’s Forzia Italia party at bay. Deep lines of battle are being drawn in the Italian government, with this presidential vote the latest combat zone for Renzi and Berlusconi.
After the dollar lost ground against a resurgent euro yesterday, the normal order of things returned today, as the EUR/USD fell alongside gold as the greenback continued its overall strong performance. However, the dollar may cowed by the US Fed tonight after a host of multinational US companies suffered due to the strength of the currency. With the Fed statement this evening the main event for the US markets today they received a minor boost from the strong earnings releases from Apple and Boeing as they opened this afternoon.
The FTSE was the epitome of limp today as the UK index flip-flopped between minor gains and losses. Similar days for oil and copper meant that the FTSE lacked direction as focus was directed towards Greece and the US. The flatness of these commodities didn’t help the precariously position energy and minor stocks that have been such burdens for the FTSE of late, and it was their losses that dragged the index down.
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