Despite the Dow Jones eking out a bit of growth, the European indices remained mildly fretful on Monday.
Shouldering a near 1% drop from Apple (NASDAQ:AAPL) – likely because global smartphone production is expected to drop 10% this quarter due to the coronavirus – the Dow managed to add 70-odd points after the bell. Though still a few hundred points off of last week’s 29500-grazing record peak, the increase did keep the US index in that conversation.
The DAX – which like the Dow was flirting with all-time highs last week almost in spite of the current geopolitical uncertainty – dropped under 13500 as it fell 35 points, with the CAC desperately clinging into 6000 despite a 0.3% decline.
The FTSE was marginally the worst performer, falling 0.4% due to the weight of its commodity and banking stocks, alongside sterling’s rebound. Against the dollar sterling was up 0.4%, lifting off of last Friday’s 2-month-plus lows, while against the euro, hit by a sharp decline in investor confidence in the Eurozone, it rose 0.6%.
The pound may find its rebound tested on Tuesday morning. The first glimpse at the UK’s Q4 growth is expected to come in at 0.0% against Q3’s 0.4% – however there is some reason to believe the economy actually contracted by 0.1% in the fourth quarter. There’s also the monthly GDP reading, forecast to bounce from -0.3% to 0.2%, alongside estimated recoveries for the manufacturing and industrial production figures.
"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."
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI