Spreadex Market Update
Stimulus-disappointed fall in China hurts Europe at the open, with crucial Eurozone inflation data still to come
With the Shanghai Composite falling around 3% (and nearing lows not seen since November 2014 during the day’s trading) as investors dealt with their post-G20 disappointment at the lack of specific stimulus plans for China’s ailing economy the Asian session only portended bad things for Europe this morning.
The FTSE dropped by around 50 points after the bell; still above 6000, but unable to capitalise on the momentum it built at the end of last week. This despite the fact that Brent Crude appears to be holding steady-ish at $35.50 per barrel (though, to be fair, basing any kind of positive movement on oil at the moment is a fool’s errand given how volatile the commodity has been this month). The day is generally light on UK data, the net lending to individuals figure (expected at £5.2 billion against £4.4 billion last month) the only number of note.
The focus, instead, will be on the Eurozone; already a far worse than forecast fall in the Germany’s import prices (the worst since last September) has swiftly countered the improvement in the country’s retail sector (sales at their best level since last August), leading the DAX to fall just shy of 1% as the day began. Still to come is arguably the biggest piece of data of the day, the Eurozone’s region-wide inflation figure; expected to fall back to 0.0% following last month’s 0.3% (which itself was revised down from an initial reading of 0.4%), such a drop will likely ensure action in March’s ECB meeting. Whether the Eurozone indices take it as a sign of impending stimulus, however, is the big question; the DAX and its peers are normally very receptive to data that increases the chances of Draghi dipping into his big bag of QE, yet this morning the indices have struck a notably negative tone, something that may only be exacerbated by another weak inflation figure.
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.
