Once again Europe seemed slightly unsure of itself after the bell, pulled in different directions by continually alarming covid-19 headlines and a broadly positive morning for data (if you look beyond the UK).
In another sign of just how untethered to reality the markets are – or rather, how bound they are to the constantly shifting relativities of ‘good’ and ‘bad’ news – globally stocks have had their best quarter for 11 years. This as investors swallowed the initial covid-19 panic and went about trying to force through a rally, headlines be damned.
At the moment, however, it looks like indices are going to be shaving a few points off that quarterly increase. Despite China’s manufacturing sector maintaining its return to growth – June’s PMI sat at 50.9 against the previous month’s 50.6, avoiding the expected dip – and the country’s services PMI coming in at a strong 54.4, Europe couldn’t make much headway.
The DAX and CAC both slipped 0.1% apiece, sitting at 12260 and 4930. For reference, the German index started the month at 11589, with its current price something of a mid-point between that, and highs of 12930. Its French counterpart, meanwhile, has risen from 4750, again failing to cling onto its recent peak of around 5225.
The FTSE was the session’s worst performer, sinking 0.8% on the back of news that the UK’s Q1 GDP reading has been revised lower after the final assessment, from -2.0% to -2.2%. Just a taste of the colossal decline forecast for Q2.
That leaves the UK index just below 6200. Like its Eurozone peers, that’s above a June-opening price of 6065, but well off its 6500-crossing struck at the end of the month’s first week.
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