UK 100 Market Falls on Jumping Italian Unemployment and US Sequester
This morning’s poor European and UK economic data has halted the markets rally and turned screens red again.
At 10am (London time) the UK 100 spread trading market was down 14 points at 6346.
With Italian unemployment figures jumping higher this morning, the lack of clarity over who will run the country in the coming years has again sent shivers across European equity markets.
We have also seen confirmation of a collapse in the UK’s manufacturing PMI.
And, of course, the US fiscal situation is hanging over us as Democrats and Republicans take things to the wire before dealing with the US sequester.
The implications of $85 billion being cut from US spending would see projected US growth fall from 2% to 1.5%, more than enough to derail the fragile recovery that is currently underway in the US.
Fresh from analysing Royal Bank of Scotland‘s figures, UK taxpayers are now looking at the second bank they partially own.
Lloyds have had to absorb Â£1.9 billion that has been set aside for mis-selling PPI, leading to record losses of Â£570 million for 2012.
More optimistically, they would have been posted a profit of Â£2.6 billion without one-off costs, giving credence to rumours that the government is hoping to sell its stake before the next general election in 2015.
Looking ahead to the US open, at 10am (London time) the Dow is being called to open down 20 points at 14,034.
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Financial Market Comments from Alastair McCaig, Market Analyst, IG Index.
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