Spreadex Market Update
15 year low unemployment claims and best Chicago PMI since January can’t help US GDP woes
With US unemployment claims reaching a 15 year low, and the Chicago PMI seeing its best figure since January, the signs were pointing to a rally from the Dow Jones. However, the US index slipped further away from its 18000 level as the afternoon went on. Whilst the dollar is still struggling against the euro, of all things, the US jobs data did boost the greenback against the pound, a move that helped eat $30 off the price of gold.
After Shell beat expectations this morning, ExxonMobil was the latest oil company to surprise investors as it posted $1.17 earnings per share alongside revenue of $67.62 billion compared to the $0.83 and $56.39 billion forecast. However, when placed in context it is unsurprising that the company had such an uninspired open since Exxon has seen a rather sharp fall from the $2.10 EPS and $106.77 billion in revenue seen at this time last year.
The Eurozone failed to escape the dark clouds that have hung over the region all week, and with Moody’s claiming the risk of a Grexit is rising there was little reason for investors to show confidence in the area. On top of this, reports are suggesting that the Greek government will reiterate its ‘red lines’ at some point this week; not the signs of conciliatory compromise that its creditors have been seeking.
The disappointing US open meant the FTSE couldn’t gain any traction this Thursday, and continued to trade nearly 70 points below the 7000 level. Despite Zoopla maintaining its post-uSwitch purchase gains, alongside the Royal Mail receiving a near 6% bump following the news that rival PostNL has scrapped its Whistl expansion plans, the overall negative trading environment was too much for the UK index. Compounded by a weakened pound, the closeness of an unpredictable general election and big losses felt by Ophir Energy, ITV and the RBS-led banking sector, the FTSE had no chance of an afternoon turnaround.
Market Update – Labour Day 01/05/2015:
- European (non UK) Indices/Equites/Bonds closed
- Asian Market closed except Nikkei
- South African Market closed
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.
