The pound’s early confidence gradually ebbed away, undermined by another drop in UK inflation.
Previously up 0.4% against both the dollar and the euro, sterling saw its gains cut to 0.1% and 0.2% respectively, as December’s inflation reading came in at a near 2 year low of 2.1%. Still, that the currency isn’t in the red given the current, ongoing and seemingly never-ending Brexit shambles is a sign of...something, likely hopes that the divorce will be delayed (or cancelled altogether).
While sterling was pretty sanguine all things considering, the FTSE was in a bad mood. Dropping 0.6%, the index slumped back towards 6850, once again struggling under the weight of its Chinese economic slowdown-fearing commodity sector. Elsewhere the DAX wasn’t up to much, sitting flat just below 10900, with the CAC up 0.3% and a handful of points away from 4800.
Turning to the US open and, after pushing higher on Tuesday, the Dow Jones is set for a quiet start, the futures having it dip 10 or so points but hold at its 24050, one month highs. On the US agenda this Wednesday are the latest earnings releases from BlackRock, Bank of America (NYSE:BAC), Alcoa (NYSE:AA) and Goldman Sachs (NYSE:GS).
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