Spreadex Market Update
US open lifts markets but weight of commodity and supermarket stocks sees FTSE left behind
A slightly better than expected goods trade deficit (at $60.5 billion against the $60.9 billion anticipated, but still greater than last month’s $58.4 billion) and a much better than forecast CB consumer confidence figure (at 96.5 against 93.9) helped the Dow Jones open at, and maintain, a 170 point jump this Tuesday. That leaves the US index at a 12 day high, and with a slim chance of edging into the green in terms of year-long growth before the end of trading on Thursday.
The Eurozone indices were even more buoyant this afternoon than they were this morning, the US open helping the DAX and CAC growth to 175 and 65 point increases respectively. Even the FTSE saw a slight improvement; with Brent Crude crawling above the $37.50 mark (even if the oil and mining stocks by and large remained firmly in the red) the UK index near enough doubled its gains, increasing by around 35 points to hit its own 3 week peak.
The FTSE likely would have been higher if wasn’t for the gains made by its housing sector being effectively negated by the Scrooge-like commodity stocks and a renewed slide from the supermarket sector. News that the sale of its pharmacy business to Celesio would be undergoing an in-depth investigation, as ordered by the CMA, caused a specific headache for Sainsbury’s this Wednesday, calling the stock to fall by just over a percent. More generally, news that Amazon intends to substantially expand its grocery delivery service Pantry in the New Year caused the likes of Tesco and Morrisons to tumble, with the online-only Ocado Group (plunging nearly 4%) especially spooked by the announcement.
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