Spreadex Market Update
FTSE continues flaccid March performance ahead of final Q4 GDP reading
With Brent Crude trickling below $40 per barrel, and copper now trading under $2.18 per pound, a commodity-heavy FTSE got off to an inauspicious start this Thursday, slipping 50 points to once again fall away from its rather formidable 6200 resistance level. Whilst investors likely appreciated March’s relative lack of volatility, the FTSE’s flaccid performance across the month doesn’t suggest that the index is out of the woods just yet, the index lacking the vigorous response to 2016’s dark days seen by the Dow Jones.
At least there is a decent chunk of data for investors to chew on before the month comes to a close, something that could help shift the fairly gloomy sentiment that has kicked off the morning. Not those figures look too promising, however: the current account deficit is expected to widen to £21.1 billion from £17.5 billion, whilst net lending to individuals is set to slip back to £5.1 billion. To cap it off the final fourth quarter GDP reading is expected to remain unchanged at 0.5%, an improvement on Q3’s 0.4% but still fairly uninspiring stuff.
Like the FTSE the Eurozone has more than a few loose ends to tie up before we head into the second quarter; already the morning has brought a big miss in German retail sales (a 5 month low of -0.4%), helping the DAX to a 60 point loss at the open, whilst there were notable improvements in the French consumer spending and inflation figures, something that failed to prevent the CAC from falling over 1%. Still to come is the Eurozone-wide inflation figure; the recoveries in Germany and France were countered by a dreary -0.8% CPI reading in Spain, meaning the region as a whole looks set to remain in negative territory, if a tad higher, at -0.1%.
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