After a dull Monday the markets were more overt in their pre-Fed fretting on Tuesday, with the European indices opening in various shades of red.
The FTSE fared best, only dipping 10 points after the bell. That means the UK index is continuing to squat at 7350, the level it has repeatedly returned to in the last week and a half. Its miners helped ease the impact of the smattering of losses seen in the banking sector, with Rio Tinto (LON:RIO) leading the way with a 1.1% rise.
Another day, another set of fresh 5-month lows for the pound. Slipping 0.2% against the euro, sterling found itself the wrong side of €1.116, while cable was unchanged at $1.254, both levels the worst since January. Tuesday is likely to see Boris Johnson continue his ascendancy to the throne, with a 2nd Tory leadership ballot set to keep him as clear frontrunner. He will then, finally, put himself up against his rivals this evening, as he deigns to grace the televised BBC debate with his presence.
The DAX was the morning’s biggest loser. Ignoring the fact new car sales managed to eke out a 0.1% increase in May largely thanks to a 9.1% surge in Germany, breaking ending an 8-month decline – to be honest, that still soft continent-wide reading may have only made its mood worse – the index fell 90 points, leaving it only a handful of points higher than 12000.
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