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.
News flow has confounded the hopes of those who might have thought the week would see an end to the current barrage of selling in global indices. Russia is now revelling in its status as both the de facto and de jure power in the Crimea, flexing its muscles and generally making everyone nervous. The flash HSBC China manufacturing purchasing managers index was below forecasts, putting indices firmly on the back foot. Although French data was a pleasant surprise, showing decent growth, it was insufficient to counter weaker German numbers.
What we are still lacking is a catalyst to drive markets higher from here. A simple lessening of tensions in Ukraine, or merely in-line economic data, isn’t enough. Russian forces massing on the Ukrainian border are enough to provoke fears of another annexation on the fringes of Europe. With the US dollar still in favour following last week’s Federal Reserve meeting, the outlook remains cloudy for risk appetite.
At least we’re seeing US futures up across the board. A week of economic data from all parts of the US economy may help provide a more positive spin as we enter the final trading week of March and the first-quarter. Ahead of the open, we expect the Dow Jones to start ten points higher, at around 16,312.