After February’s turbulent end, the European indices started March ready to rebound as bond markets stabilised over the weekend.
Of course it also helps that the US stimulus package has properly returned to the spotlight this week (even if fears of surging inflation caused BY the success of the bill was one of the reasons behind last week’s tantrum).
Following safe passage through the firmly blue House, the American Rescue Plan is off to the Senate, where the Biden administration will need every Democrat senator to vote with the bill to ensure it gets passed via the simple majority required by the budget reconciliation method. This will be easier now that the $15 minimum wage provision has been removed – a provision two Democrat senators opposed – after being deemed extraneous to budget legislation by Senate Parliamentarian Elizabeth MacDonough.
With GBP/USD failing to pick up steam – it barely moved after the bell – the FTSE was free to lead the pack this Monday.
The UK index added 120 points after the bell, leaving the FTSE around 15 points short of 6,600.
The Eurozone indices weren’t too far behind their British cousin. The DAX approached 13,950 thanks to a 1.3% increase, while the CAC was 20 or so points adrift of 5,800 following a 1.5% rise.
The Dow Jones is set to post similar, if less explosive, gains this afternoon, with the futures pointing to a 1% increase when trading gets underway in the US.
It’s a sign of how battered the Dow was by the end of the week, however, that such an increase would only just lift it past 31,250 – more than 700 points off the 32,000-plus record high set last Wednesday.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."