A sharp downturn in German data has cast a long shadow over stock markets today, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Dow provides a glimmer of hope while other markets drop
“The Dow was the sole gainer among major US and European indices this afternoon, bolstered by Caterpillar’s earnings. Any hope of further upside today for most stocks has been dashed by the shocking weakness in German manufacturing data. One datapoint is not enough to move the ECB towards a furtherance of their dovish posture, so stocks are on their own for now.”
FTSE 100 slips back from 7700 again
“Hopes of a sustained rally in the FTSE 100 have been dashed too, though at least BP hasn’t been the drag on performance in the manner of Shell last week. But if the weakness in German data begins to spread then we could see August live up to its reputation as an unpropitious month for stocks, even if equities do continue to gain into the end of the year.”
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