In the latest twist to a chaotic few sessions the Dow Jones avoided what briefly looked like it was going to be a 700 point drop, instead mounting a comeback.
The Dow was all over the place after the bell. With the futures promising the index was going to spill its guts, it was a welcome relief that the index instead quickly shifted into the green. The index is still pretty damn volatile, however, with its gains ranging anywhere from 100 to 350 points. It’s also worth noting that the Dow did something similar yesterday, ducking an immediate bloodbath only to completely lose its bottle by the end of the session.
Understandably a positive, if hard to read, US open helped out a rather desperate set of European indices. The FTSE, which had tasted some sub-7000 levels earlier in the day, managed to hold just above 7200,while the DAX and CAC pulled back from their 2.5% declines to settle for a 1.8%-ish drop.
While the indices received something of a salve when the bell rang on Wall Street, the introduction of US investors only made matters worse for the pound. Cable plunged 0.9%, sending sterling back below $1.39 for the first time in over 2 weeks. The pound also fared poorly against the euro, shedding 0.4% to remain the wrong side of €1.125.
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