Spreadex Market Update
3 digit delight for DAX and Dow
The UK index maintained steady gains for most of the day, but in scenes reminiscent of the start of the month, the FTSE couldn’t keep up with its more explosive peers. This might be a sign that the election is starting to weigh on the index, as it has been doing the pound, with May 8th looming in investors’ minds and placing a ceiling on the FTSE’s gains.
Despite the collapse of its takeover deal for Mr Bricolage, Kingfisher remained in the green ahead of its full year results tomorrow. Investors reacted well to the removal of the risky bid for the French retailer and the end of weeks of uncertainty, regardless of the damage it does to Kingfisher’s overseas hopes, leading the stock over 2% higher as the day continued.
The Eurozone remained a veritable Emerald City for investors, with green scenes throughout the region. The DAX, especially, rocketed past 12000 as it held onto its 3 digit gains, as the strong figures from this morning continued to negate the murky situation in regards to Greece’s reform proposals. Germany even managed to sneak in positive inflation to the mix, a positive sign ahead of tomorrow’s region-wide CPI data. Whilst the inflation figures for the Eurozone as a whole are still meant to be negative, an increase to -0.1% from -0.3% is a move in the right direction, and another piece of evidence in the very convincing case Draghi can build for the success of the ECB QE move.
The US markets exploded out of the gate, and in a rare sight managed to ignore the strong dollar. Like the DAX the Dow Jones posted its own 3 digit growth as it climbed ever nearer to regaining its much vaunted 18000 level. The US markets were in no doubt helped by higher than expected personal income and pending home sales figures, with the latter especially leaving forecasts in the dust. It wasn’t all good news, however, as personal spending slipped below expectations despite the rise in personal income; it will be interesting to see whether this fall in spending will be reflected in the USA’ consumer confidence figure tomorrow afternoon.
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