Wednesday’s rebound was arguably just as arbitrary as the losses that have marred the last few sessions.
Yet regardless if justified or otherwise – nothing macro has changed from Tuesday to Wednesday, beyond stocks that were previously at a premium now looking slightly cheaper – investors went hard as the day progressed
The US open ensured that Europe’s early gains could blossom. The Dow Jones surged 450 points higher, after falling around 630 points last night. The Dow is now back dancing around 28000, roughly 1200 points adrift of where it was just this time last week.
Europe was just as strong – and in some place, even more robust. The CAC shot towards 5050 thanks to a 1.5% increase, while the DAX topped the region with a 13230-touching 2% surge.
Despite cable turning its initial decline into a 0.1% rise – the pound was still down 0.3% against the euro – the FTSE was able to keep pace with its peers, finally re-crossing 6000 as it climbed 1.5%. Sterling’s mixed performance comes against a backdrop of Brexit chicanery from Boris Johnson’s law-breaking government.
Wednesday’s rebound suggests investors aren’t too worried by news that the human stage of the Oxford vaccine trials has been paused due to a participant having an adverse reaction. Given how brash the markets have been around any vaccine updates, this understanding that delays in the process aren’t necessarily cause for concern is a surprising acknowledgement of nuance. That, or investors didn’t pay the headlines any mind, all too ready to buy into the session’s aggressive comeback.
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