Spreadex Market Update
Dollar damages Dow once again; commodity stocks limit FTSE; Greece leads Eurozone lower
Another set of disappointing jobless claims data should have, based on recent trends, helped walk the Dow Jones in the green whilst damaging the dollar in the process; however, robust pending home sales complicated the matter, leaving the dollar to maintain its impressive performance and its harmful effects on the Dow.
There was an element of déjà vu for the FTSE this Thursday afternoon, and for once it had little to do with Greece. Brent Crude, slipping to nearly $61 per barrel, is now at its worst price since mid-April, whilst copper is performing at its weakest price since the end of last month. These movements have taken with them the FTSE’s commodity stocks, including Vedanta, Anglo American and BP, leaving the UK index the wrong side of flat this afternoon.
Where there are losses of late the Eurozone is usually leading, and it was no different this Thursday afternoon. Wednesday’s rally has disappeared in a puff of Greek smoke, and bearish comments from legitimate heavyweights like Schauble and Lagarde outweighed the more positive claims of anonymous Greek spokespeople. In a rare sign of, for want of a better word, honestly, relatively new head Greek negotiator Euclid Tsakalotos claimed that ‘high level’ political agreement will be needed between the two sides of the debt debate for a deal to actually be finalised, words that are a lot more bearish than those spouted by his countrymen in the past few days.
After months of declines, there was finally some good news for Abercrombie & Fitch this afternoon, despite signs to the contrary. Wider than expected losses alongside declining revenue fit in with Abercrombie’s recent dismal narrative; however, the promise of improving sales trends in the next 12 months was enough to please investors, causing the out-of-fashion clothing brand to leap by nearly 9% after the bell.
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