Spreadex Market Update

Retail concerns in UK and US undermine previously positive sentiment



Benefiting early on from positive correspondence between the US and China, then Western markets lost their way as Tuesday progressed, with some duff data serving to undermine sentiment.

Retreating from its 6-month highs – it was initially expected to open 1000 points away from its all-time peak; a mere hop skip and jump for the index – the Dow Jones fell around 80 points, tumbling back below 28250.

Potentially just a blip after yesterday’s covid-19 treatment excitement, the Dow appeared to take a hit following the release of the latest CB consumer confidence reading. Instead of rising to 93.0, it came in at a 6-year low of 84.8.

The FTSE found itself in a similar situation. As retail employment falls at the faster rate for over a decade, the CBI realised sales balance reading for August sank to -6% – a huge drop from both July’s 4%, and the forecast 7%. This, combined with an unlikely surge from the pound – investors seem to have gotten over any no deal Brexit concerns, for now anyway – sent the UK index 0.8% lower, leaving it at 6060.

The Eurozone indices, on the other hand, just about clung onto their early growth, though at a far reduced level. The DAX added 0.2%, aided by a revision to Germany’s Q2 GDP data, while the CAC led a flagging pack with a 0.3% increase.

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.