Spreadex Market Update
Friday, May 13, 2016 - Afternoon Market Update
IMF and Lagarde join Carney in warning of post-Brexit shock
The FTSE maintained its half a percent drop this morning, the index now having the added weight of a dramatic decline in construction output (which fell a whopping 3.6% month-on-month) and yet another Brexit warning, this time from Christine Lagarde and the IMF. The International Monetary Fund chief arguably went even further than Mark Carney did yesterday, stating that ‘a stock market crash and steep fall in house prices’ could follow a victory for Vote Leave, whilst reminding the market that the issue has global ramifications despite the domestically-framed nature of the debate.
In contrast to the UK index the Eurozone actually managed to shrink its losses this Friday, the DAX now down a mere 0.2%, with the CAC falling 0.5%. This despite news that the region’s first quarter growth had been revised down from 0.6% to 0.5%, news that likely helped offset any goodwill gained from Germany’s better than forecast GDP reading.
Looking to the US open and the Dow Jones is expected to continue yesterday’s decline, the futures pointing to an 80 point fall after the bell. If the Dow is to avoid this drop then the afternoon’s data will have to buck the recent US trend. Sadly that looks unlikely, with retail sales set to remain in negative territory at -0.3%. The preliminary UoM consumer sentiment figure, meanwhile, is expected at 89.9, but with last month’s data already revised down to 89.0.Recent Posts:
Stock of the day 13/05/2016 - Royal Mail PLC
Morning Market Comment 13/05/2016
Evening Market Comment 12/05/2016
Afternoon Market Comment 12/05/2016
Stock of the day 12/05/2016 - Thomas Cook Group PLC
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