Asian markets drag Europe lower

Less than inspiring words from the Japanese prime minister sent Asian markets lower, and European confidence has followed suit.

The increasing importance that European markets place on the overnight performance of those in Asia markets was reflected in the weak start by almost all the major European indices this morning. This follows Japanese prime minister Shinzo Abe’s comments yesterday, where he was due to outline the third tranche of his plan to reinvigorate the Japanese economy and devalue the currency. Broadly speaking his comments have been met with little excitement and plenty of skepticism, and the Nikkei reflected this disappointment with a fall of almost 4% by the end of trading.

Although Europe has had a raft of service purchasing managers index (PMI) figures out for the UK, Spain, Italy and the EU with mixed results, the more important figures for the day will be the US non-farm payroll figures out at 1.15pm, and the latest comments from the US Federal Reserve Beige Book at 7pm (London time).

Tesco have posted their latest first-quarter set of results, which has left investors unimpressed. The supermarket has continued to see their market share chipped away at, and the economic problems of the EU continue to drag its sales figures lower. This sets a worrying precedent for the other four big food retailers that are yet to report.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.