Spreadex Market Update
Corporate earnings fail to impress
The main news this morning is in regard to yesterday evenings FOMC statement, putting the final stage of quantitative easing (QE3) to bed, whilst offering a more hawkish statement. Consequently the ‘cheap’ dollars that had flooded the market are now being reduced and hence the dollar has appreciated against most major currencies. Cable has struggled to stay above $1.60 and with last nights Fed announcements, the pound has depreciated to $1.597 this morning. Furthermore the biggest loser was the emerging markets as the Japanese yen saw a large decline as the dollar rallied, moving to a 109.145 high last night, this is a 3 week high for the dollar.
At the open the FTSE opened up but this was short lived, with housing market data out showing a slowing increase of property prices in the UK, with house price inflation down 0.4% from September, consequently not giving much cause for optimism. Barrett Developments has taken the brunt of losses, falling 2.3%. However corporate earnings failed to impress a great deal with Barclays, BT and Aviva beating third quarter profit expectations, these stocks seem to be trading pretty flat as investors remain cautious of recent highs and hence the FTSE has struggled to maintain the gains from yesterday now trading at 6447, in line with its opening level.
Commodities are once again looking pretty volatile as Brent crude has fallen away from a high of $87.28 yesterday, slipping 85 points to $86.36 a barrel. Moreover Brent has struggled to reach its mid-month high of $88. Furthermore gold has seen a downward trend recently and still as interest rates remain low gold has been punished and trades at $1202.5, far off many analysts forecasts of gold trading up near $1250 this month.
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