Spreadex Market Update
Wednesday, February 25, 2015 - Morning Market Update
Markets look tired after yesterday’s record highs
After hitting an all-time intraday high on Tuesday afternoon, the FTSE fell away from that record price as the day reached its end. Regardless the UK index still managed to close strong after the dual boost of Greek and US news. However, the FTSE is looking a bit tired this morning, as are all the markets, with little current impetus to continue the rallies seen last night. This sentiment was exacerbated by the losses incurred by Weir Group, with the engineering company warning of a ‘significant reduction’ in 2015 revenue, whilst AO world saw a staggering 36% drop following a profit warning this morning. On top of this Brent Crude is currently trading at around $58 per barrel after it couldn’t sustain its surge towards $60, meaning the FTSE’s oil stocks were back in the red as they continue to change colour as often as a traffic light.
Yet there was good news for the pound; with no US interest rate rise in the immediate future, the UK currency began to make gains against the dollar. In fact, the pound managed to break through the 1.550 level that has proven elusive for nearly two months.
The FTSE wasn’t along it reaching highs; in fact, compared to the record closes of the DAX and Dow, its intraday achievement pales in comparison. The German index obviously was a big beneficiary of the growing short-term calm in the Eurozone, with only some parliamentary votes between Greece and its much needed bailout extension. There is little in the way of data from the Eurozone this morning, and with the German bailout vote not until Friday, it could be a quiet day on the continent.
Finally, the Dow Jones and S&P500 joined their European counterparts in reaching record highs last night, after investors were very responsive to what they saw as a positive testimony from Fed chair Janet Yellen. This statement helped overcome a slip in consumer confidence, ironically the kind of data that will help delay the much clamoured for interest rate hike. Yet like in Europe, the US futures looked flat as investors effectively asked, what now?Recent Posts:
Evening Market Comment 24/02/2015
Stock of the day 24/02/2015 - British American Tobacco PLC
Afternoon Market Comment 24/02/2015
Morning Market Comment 24/02/2015
Evening Market Comment 23/02/2015
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