Spreadex Market Update
More Chinese data woes and a Catalonian election shock pushes markets lower
Ahead of its manufacturing figures on Thursday, released in tandem with the start of the country’s National Day holidays, profits for China’s industrial companies fell by 8.8% across August, the sharpest monthly decline since 2011. It is yet another reminder of the creaky nature of China’s economy, and, despite mild (and always suspicious) closing gains for the Shanghai Composite, was partly to blame for this Monday’s morning losses.
Matters weren’t helped by the latest Eurozone-crisis contributing election woes, for once not Greek but by the Catalan region of Spain; a majority for the separatist parties in Sunday’s vote could now lead to a formal vote on Catalonian independence, and in the process plunge Spain into an economic and political quagmire. Add onto this a further fall by Volkswagen, with reports claiming the company was warned against the use of its defeat devices 8 years ago coming alongside the fact that the ECB has suspended purchases of VW asset-backed loans piling on the misery at the car giant, and the DAX grazed an 100 point drop at the open whilst the CAC tumbled half a percent.
The FTSE, meanwhile, fell by around 50 points after the bell, hindered by the latest China-inspired decline in its market-dragging commodity stocks. Even a 3.5% jump by SABMiller, as the Sunday Times claimed that Anheuser-Busch InBev could bid $106 billion for the company, couldn’t come to the UK index’s rescue, with those gains countered by losses for Vodafone after the long-rumoured talks of an asset-swap with Liberty Global came to an unsuccessful end.
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.
