Somewhat directionless, and with many not far off their all-time highs, the Western indices drifted lower on Friday afternoon.
The Dow Jones dipped 60 points after the bell, suggesting the index will be unable to end an overall positive week at a fresh record peak. Nevertheless it remains within range of those levels, sitting just below 29400.
The situation in the Eurozone was slightly more mixed. The DAX nudged up by 0.1%, effectively holding at its own historic high; in contrast the CAC slipped by 10 points, still unable to get past 6100.
The FTSE can perhaps count itself lucky that its losses weren’t greater than 0.2%. The impact of serious losses from Royal Bank of Scotland (LON:RBS), down 6% and AstraZeneca (LON:AZN), which fell 3.4%, was somewhat mitigated by the pound giving by 0.3% against dollar and euro alike. This following sterling’s post-Javid resignation pop on Thursday.
Next week presents another potentially tricky calendar for the markets. With US trading delayed by Presidents’ Day on Monday, the real good stuff starts on Tuesday, as the Eurozone ZEW economic sentiment figures give the markets an idea of how analysts and investors are feeling in a coronavirus-stricken atmosphere.
The UK’s wage growth, inflation and retail sales readings all then lead into Friday, which should give early indication of how the manufacturing sector is dealing with the outbreak via a series of flash PMIs.
And all of this is before factoring in the coronavirus itself, namely whether or not the rate of new cases has continued to slow around the world.
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.