Coronavirus was back to the top of the agenda on Friday, with a rising number of new cases in China and South Korea putting the fear in investors ahead of the session’s flash manufacturing PMIs.
Falling 0.7%, dragged lower by its oil and mining stocks, the FTSE sank back under 7400 – a blow given it had spent the week clawing its way to 7450.
The losses in the Eurozone were even more pronounced. The DAX shed 0.9% as it fell under 13600 for the first time in 10 days, while the CAC tumbled to 6015 after shedding 1.1%.
Looking ahead to the US session and, after a tough end to Thursday, the Dow Jones is set to slip under 29000 following a 200 point drop.
Of course, all this is likely dependent on the state of the day’s PMIs. The French flash manufacturing reading undershot expectations at 49.7, a decline only somewhat mitigated by a better than expected services figure.
The German manufacturing PMI is estimated at a dreadful 44.8 against last month’s 45.3, with the Eurozone-wide number forecast to fall from 47.9 to 47.4. As for the UK manufacturing reading, that’s expected to slip back to 49.7 from 50.0; the services data, meanwhile, is looking to slide from 53.9 to 53.4.
Over in the US, the manufacturing figure is forecast at a comparatively robust 51.5, against the previous month’s 51.9.
"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."