What’s Driving UK and New Zealand Outperformance?



UK’s FTSE 100 makes amends for previous day’s losses

Major European indexes (DBEU) were mostly trading on a negative bias on June 8, 2016. In contrast, the United Kingdom’s FTSE 100 and Turkey’s BIST 100 index posted gains of 0.27% and 0.86%, respectively. The rise in the FTSE 100 was widely attributed to strong manufacturing production figures that were well above Market forecasts.

The SPDR Euro STOXX 50 ETF (FEZ) fell 0.78% on June 9, 2016. The German DAX fell 0.69%, and the French CAC 40 fell 0.61%.

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Did the RBNZ decision to hold rates cause a fall in the Markets after the initial surge?

Critical Asian indexes (AAXJ) were trading on a mixed bias on June 8, 2016. That came after the Reserve Bank of New Zealand (or RBNZ) decided to keep rates on hold at ~2.25%. The decision to hold rates had a negative impact on the Oceania indexes.

The Australian (EWA) S&P/ASX 200 and the Dow Jones New Zealand Index (VPL) fell 0.67% and 0.02%, respectively. Asian markets were initially on an upward trajectory as growth in Chinese imports gave an initial boost to the markets.

The Japanese (DXJ) Nikkei 225 rose 0.93%. The Indian Index Nifty 50 (INDA) was trading higher by 0.08%. The Chinese (MCHI) DJ Shanghai Index was trading on a flat note.

Slight uptick in US indexes ahead of unemployment claims release

Now let’s look at how US broad-based indexes fared on June 8, 2016. The Volatility S&P 500 Index rose 2.4%. The S&P 500 Index and the NASDAQ Composite (IXIC) rose 0.33% and 0.26%, respectively. The Dow Jones Industrial Average also posted gains of 0.37%.


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