What’s Driving UK and New Zealand Outperformance?
By David MeyerUpdated
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%.
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.
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%.
