Sour end to the week for global markets

Heading into the close the FTSE 100 is 60 points lower, with the index ending the week almost 4% lower.

City of London
Source: Bloomberg

The steady progression of losses on global markets continued today, with no sign of any buying just yet. In fact, buyers seem to have clocked off early for the weekend. It being Friday the 13th, no one can really blame them; there will likely be better opportunities later in the week, as the pre-Thanksgiving frenzy helps lift US markets and everyone else gears up for eurozone quantitative easing.

A weak set of US retail sales failed to dent the enthusiasm of US dollar bulls, who pushed the Dollar Index higher and took back much of the ground lost yesterday. When the dollar rises even after poor economic news, it is a clear sign that markets have concluded that a rate hike is on its way.

After their worst weekly performance since mid-August, UK shares need to find a positive story and soon; the continued unpopularity of the mining sector is hardly likely to change next week, when China data is all but absent.

Sadly for equity market bulls, the next week will still be all about a Fed move. US CPI and Federal Reserve minutes dominate the agenda, and if these appear to back up the speeches of last week then we may well witness further selling in US stocks.

The bearish end to the week for oil prices does not bode well for the big energy firms either, putting further downside pressure on an already beleaguered market. 

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.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

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.