So far so good. The European markets gradually expanded their gains as Monday went on, with the prospect of a positive open from the US set to keep the comeback going this afternoon.
Despite MPC member Gertjan Vlieghe beating the hawkish drum at an event in London on Monday morning, the FTSE remained undeterred in its early in the week recovery, investors’ hopes of a relative bargain sending the index up 1.2% to tickle 7180. Vlieghe’s comments seemed to mean more to the pound; cable rose 0.4%, taking sterling back above $1.385, while against the euro the currency nudged 0.1% higher to lurk just below €1.13.
The situation was much the same in the eurozone. The region’s indices ignored the euro’s 0.3% rise against the dollar, with the DAX surging nearly 1.8% and the CAC jumping 1.4% as a green calm – however temporary – settled over the markets.
Of course, how the Dow Jones behaves this afternoon will likely dictate whether or not things remain quite so verdant. Luckily, at the moment at least, the Dow is facing a near 300 point increase when the bell rings on Wall Street, one that would take the index back above 22450 (for context that’s more than 2000 points down from the all-time highs struck at the end of January).
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