Following another record close from the Dow Jones and DAX on Thursday, the European markets started Friday with an air of hesitation.
For the FTSE that cautiousness was arguably justified. Though the GDP reading for January came in notably better than the 4.9% contraction forecast, the UK economy still shrank by 2.9% in the first month of the year.
This contributed to GBP/USD dropping 0.3%, which in itself allowed the FTSE to avoid a full foray into the red, instead dropping by a handful of points.
The sharpest decline on Friday morning came from the DAX – fair enough given this week’s swelling. Falling 0.6%, or 90 points, the index slumped back below 14,500. If it were to close at that level, it would be up 400 points on the week.
The CAC was closer to the FTSE than DAX after the bell, losing 0.1% as it continued to sit at or near its recent 12 and a half month high.
Finishing Thursday achingly close to 32,500, the Dow Jones’s stimulus package celebrations appear like they have come to an end. It isn’t expected to endure much of a hangover, however – currently the futures have the Dow starting down just 20 or so points this afternoon.
There’s not a whole lot on the agenda to change things up this Friday, which could mean a historic, newsworthy week ends with a whimper, not a bang.
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