There really wasn’t a lot going on this morning, despite the latest round of European services data.
The main news was that the UK services figure hit an 11 month low of 53.2. That tips the trio of August PMIs towards the negative after yesterday’s one year nadir construction reading countered last Friday’s stellar manufacturing number. Yet surprisingly sterling wasn’t too bothered about the dip, instead rising 0.2% against both the dollar, weakened by the North Korea issue, and the euro, which is facing the uncertainty of Thursday’s ECB meeting. This meant the FTSE lost whatever meagre momentum it had after the bell, the index slipping 0.1% to loiter just above 7400.
The eurozone data wasn’t much better. For the region as a whole the final services PMI was revised down to 54.7, a notable slide from July’s 55.4, following disappointments in Italy and France. This caused the CAC to slip 0.2%, and the euro to lack any energy, though the DAX managed a 0.3% increase after the German figure just about beat expectations.
Looking to this afternoon and after missing much of the North Korea-reaction due to Labour Day the US markets are set for a sluggish start. The Dow Jones is facing a flat open when the bell rings on Wall Street, keeping the index around the 21900 mark. Beyond any further nuclear developments the only other thing to focus on this afternoon is the factory orders figure, set to plunge from 3.0% to -3.3% month-on-month.
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. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.