Tesco (LON:TSCO) helps FTSE avoid sharp losses seen in eurozone
While the rest of the market fretted over the situation in Syria and the lingering concerns over a US-China trade war, the FTSE managed to avoid any sizeable losses this Wednesday.
With Tesco extending its gains to 5.5% following its ludicrously large year-on-year increase in pre-tax profit, the FTSE only fell by 0.2% as the day went on, far less than elsewhere. The index also benefited from cable slipping back under $1.42, with the pound impacted by an unexpected, and sharp, drop in both the latest manufacturing and industrial production readings.
Over in the eurozone, where investors had less of a distraction from the multiple macro-problems currently facing the markets than their UK counterparts, Wednesday’s losses were far more severe. The DAX dropped around 100 points, slipping back towards 12300 having hit a fresh 3 week high on Tuesday; the CAC, meanwhile, was down 0.6% as it abandoned 5300.
Bleak U.S. Open On Horizon
It is going to be interesting to see if the so-far resilient FTSE can withstand the pressure of an aggressively negative US open. The Dow Jones is facing a 220 points decline when the bell rings on Wall Street, a move that would effectively wipe out more than two-thirds of the Xi-driven growth posted on Tuesday.
An added twist this Wednesday sees the re-emergence – however brief – of US interest rates as a point of focus for investors. Ahead of this evening’s March Fed meeting minutes, where the markets will gain more insight into Jerome Powell’s first get-together as the head of the central bank, the US inflation reading is set to slip from 0.2% to 0.0% month-on-month, but with the core CPI figure unchanged at 0.2%.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. 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.