All trading involves risk. Losses can exceed deposits.

Markets weaken in afternoon trading

This afternoon’s economic data has done little to prevent the equity markets from sliding.

All trading involves risk. Losses can exceed deposits.

This morning the EU posted figures confirming that unemployment levels have remained stable as expected, although not quite reaching record highs. The more worrying aspect of the unemployment situation for Europe is youth unemployment, as some countries have some truly awful stats regarding the unemployment of those aged 25 and under. Greece has over 60% youth unemployment and this is the demographic that is most upwardly mobile. The potential ‘brain drain’ that is leaving Europe may not be fully appreciated for another ten or twenty years.

Vodafone shareholders are still feeling pleased for themselves; speculation is that around £40 billion of the proposed $130 billion Verizon are willing to pay to leave the partnership could be going to shareholders.

Unfortunately Vodafone’s good outlook is not enough to prop up the FTSE on its own. Although sentiment from the other side of the Atlantic is negative at the moment, after recent events we would not be completely surprised if the US markets were to charge higher once the European indices are closed. 

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.