Spreadex Market Update

FTSE drifts lower after post-Bank Holiday return, cable at fresh 2020 high



The FTSE returned from a long Bank Holiday weekend a bit too chilled out, going in reverse as it fell further from 6000.

Given that the market is digesting the strongest Chinese Caixin manufacturing PMI since 2011, the UK index should be higher.

And there was evidence of that over in the Eurozone, where the DAX jumped 1% and the CAC climbed half a percent, striking 13070 and 4970 respectively.

Yet despite the support of its miners – which saw gains of 0.6% to 2.5% as gold and copper rose – the FTSE dropped 0.4%, sitting at its lowest price for a month.

The index hasn’t been helped by the pound’s continued rise against the dollar, the greenback suffering in the aftermath of last week’s dovish Jackson Hole address from Federal Reserve head honcho Jerome Powell.

Though it only added another 0.2% on Tuesday, that increase pushed cable to $1.341 for the first time since it spiked towards $1.35 in the middle of last December. It’s an incredible turnaround from the sub-$1.15 lows struck in mid-March, made all the more remarkable considering it comes against a backdrop of Brexit angst, with Michel Barnier and David Frost holding emergency talks this Tuesday to try and find a way forwards. And they might struggle to – Barnier reportedly ‘won’t even discuss’ fishing rights, one of the key sticking points between the UK and EU.

Looking further ahead, and the Dow Jones is set to climb 125 points this afternoon. That would return it once again to 28550, having tumbled from 6-month-plus highs of 28800 on Monday.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

Financial Trading Blog

Nasdaq At Record Highs Ahead of Tesla, Intel Earnings

Read More

Daily Market Update

20.04.26 Monday Morning

The S&P 500 edged lower in thin trading after record highs as investors weighed renewed US-Iran tensions and...

Read More

Economic Diary

20.04.26

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

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 www.spreadex.com.