Trading got bloody on Friday afternoon, some triple-digit declines for the US and European indices capping off a hectic week with a nasty fall.
The Dow Jones gave back all of Thursday’s growth after the bell, the index dropping just shy of 300 points as its banking and industrial stocks posted big losses. This as the US flash manufacturing and services PMIs both notably underperformed expectations, coming in at 52.5 and 54.8 respectively.
The Dow’s slump very much put it in the same company as its European peers. Following a dreadful morning for manufacturing data, with the sector falling further into contraction territory in March, the eurozone indices were in a state. The DAX was down 140 points, leaving it a smidge above 11400, while the CAC plunged 100 points, the French bourse hurt not only by its manufacturing PMI, but an almost as terrible services reading.
As for the FTSE, it actually had its peers beat on Friday, haemorrhaging 2% on a toxic combination of its commodity and banking losses, and a rather remarkable rebound from the pound.
Sterling was up 0.7% against the dollar and a whopping 1.5% against the euro, the currency making the most of both last night’s Brussels Brexit extension – even if it does only further plunge the UK into political crisis – and the dire data elsewhere. The pound may want to enjoy its gains while it still can – it is in for another go around on the Brexit roller coaster next week.
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.