Get our Weekly Trading Update email:

Spreadex Market Update

Tuesday, January 13, 2015 - Morning Market Update
Connor Campbell - Market Analyst at Spreadex

Mixed morning on the markets as earnings season proves inconsistent

United Arab Emirates’ oil minister Suhail bin Mohammed al-Mazroui was the latest member of OPEC to defend the consortium’s refusal to act over oil’s precipitous fall. Stating that the cabal were correct not to cut in November, the minister went on to mention the importance of US shale gas to the global commodity markets. As the minister pontificated over the correctness of OPEC’s decision, oil continued its point purge, with Brent Crude slipping to 6 year lows of $45.25 per barrel.

Despite oil’s decline, the FTSE has finally shown resilience towards its energy-sector, and was buoyed at the start of the day by some better-than-expected Christmas statements from key companies. The announcement that CEO Dalton Philips was leaving caused Morrisons’ stocks to rocket up, proving that cutting dead weight can overcome bad news in times of crisis. ASOS was a big winner this morning as retails sales were up 15%, with investors ignoring a decline in its retail gross margin; Greggs was also positive, claiming that the company expected to beat expectations following a strong Christmas. Results like these helped the UK index overcome struggling stocks like Debenhams, and its suffocating energy-sector, to post gains after the bell.

However, the party couldn’t last all morning, as the confirmation that the UK’s inflation had fallen to its lowest figure since 2002 at 0.5%. Embarrassingly for Mark Carney, such a fall means he will be the first governor of the Bank of England to have to write to a Chancellor to explain why an inflation target was under, rather than over, shot. Yet the expectance of this news meant investors had factored in the disappointing figure, and the FTSE was allowed to continue its marginally positive run this Tuesday morning.

More political uncertainty is exactly what the Eurozone doesn’t need at this key juncture in its history; however, as news came out of Italy that President Giorgio Napolitano is expected to stand down, potentially as soon as tomorrow, that is exactly what it got. With the Greek election looming next week, the ECB gearing up for decisive (or potentially indecisive) QE action, alongside the growth of Spanish political upstarts Podemos and the most unclear election in decades from its EU partner the UK, the Eurozone is currently stumbling in the proverbial dark for economic and political consistency. This instability is being felt on the markets as Eurozone indices lurch between gains and losses on the back of the slightest hints of QE hope or dismay.

Finally, the US markets closed at a loss last night as investors were spooked by analysts’ negative expectations for this quarterly announcement season, despite the Fed’s Dennis Lockhart claiming the Federal Reserve is ready to raise rates in mid-2015. With a flurry of banking firms to announce earnings later this week, today’s stock focus will be on GameStop, as the company tries to avoid going the way of the UK’s Blockbuster by modernising its approach to in-store sales.

Recent Posts:
Afternoon Market Comment 12/01/2015
Stock of the day 12/01/2015 - Morrisons
Weekend Paper Roundup 12/01/2015
Morning Market Comment 12/01/2015
Afternoon Market Comment 09/01/2015

The Trading Day and Week Ahead

For further information on the trading day ahead, take a look at our Financial Diary, which previews all the Economic Data due out to today and projected or previous figures.

Our Financial Diary is updated in real time as the figures are released throughout the day.

If you are unsure what different Economic Figures mean take a look at our Economic Indicators Explained guide.

For a look at the trading week ahead our Financial Diary also lists all the companies due to submit trading updates this week. Each Friday, our diary will preview the forthcoming week's economic indicators and company reports schedule.

For market trends and analysis, don't forget our charts have automatically generated support and resistance trend lines helping aid your financial spread betting with technical analysis. For more help on using our charts, view our Guide to Trading with Charts?


Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone so please ensure you fully understand the risks involved.

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