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Benign Start To Trading Following Last Week’s Inflation-led Rollercoaster

Published 17/05/2021, 09:34
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The rollercoaster drama of last week gave way to a fairly benign start to trading this Monday morning.

Contributing to the quiet open was the overnight figures out of China, numbers that are indicative of a slowing recovery in the country.

Fixed asset investment fell from 25.6% to 19.9% month-on-month, while industrial production dropped from 14.1% to 9.8%. Most upsetting for Western investors, retail sales almost halved, from 34.2% to 17.7%, far worse than the 25.0% forecast.

This news helped nudge the FTSE into the red, but not by enough to imperil its status above 7,000 – for now. Instead, the UK index dipped by 0.3%, leaving it at 7,030.

Sterling, meanwhile, eked out a 0.1% increase against both the dollar and the euro, sitting at $1.4107 and €1.162 respectively.

Things were just as flat in the Eurozone, where the CAC started the week unchanged, and the DAX at most moved 0.1% higher.

The Dow Jones looks unlikely to bring about any change – at least, any positive change – when trading gets underway in the US. After hefting itself back above 34,380 by the end of last week – remember, it had fallen as low as 33,288, from all-time highs of 35,000-plus – the Dow is set to drop by 100 points, as it struggles to maintain Friday’s closing rebound.

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