Despite mounting reports that the Ukrainian plane that crashed in Tehran was downed by Iranian missiles, the markets continued to rise on the assumption that tensions have cooled.
Following the assassination of Qassem Suleimani, last Friday it appeared like we were on the brink of World War Three, sending markets tumbling. Now the Dow Jones is all set to cross 29000 for the first time in its history later this afternoon.
The avoidance of the expected escalation has allowed the Western indices to resume the buoyant start they had initially seen to the New Year, one plumped up by Chinese stimulus and ongoing goodwill regarding the soon-to-be signed trade deal.
The DAX, adding another 35 points, kept above a near 2-year peak of 13500, while the CAC remained close to its 12 year high of 6050 as it rose 0.2%. The FTSE – so often the black sheep – did climb 0.3%, but, at 7620, was still around 50 points shy of the 5-month high it struck on Boxing Day.
With the US-Iran conflict seemingly now on the backburner, this afternoon’s nonfarm jobs report might have the remit to make some waves. Analysts are expecting wage growth of 0.3% against the previous month’s 0.2%, but with a sharp fall in the headline nonfarm figure from 266k to 162k. The unemployment rate, meanwhile, is set to remain steady at 3.5%.
If not quite as busy as Thursday, it was still another bad session for UK retailers. No-one knows what to do at Superdry, not even returning CEO Julian Dunkerton. The fashion stock suffered its latest dramatic plunge following its Christmas results, dropping 20% to a 13-month low of £3.78 as it revealed a 15.8% slide in group revenue. That means it now expects underlying pre-tax profit of between £0 million and £10 million for the full year, against analysts’ previous forecasts of £40.5 million.
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."