A positive open in the US helped the European indices undergo quite the turnaround this Wednesday afternoon.
Though its 60 to 80 point climb still leaves the index around 100 points away from where it started yesterday, that the Dow Jones didn’t continue its North Korea-fearing fall was enough to cheer up Europe’s previously gloomy investors.
As for the day’s data, while the Markit and ISM services PMIs came in lower than forecast – at 56.0 and 55.3 respectively – both substantially improved on last month’s figures; and given the dollar paid little attention to this news, this gave the Dow yet another reason to rise after the bell.
Talking of the forex markets, there was almost no movement between the dollar/euro/pound this Wednesday. That’ll be in part due to the fact that the week’s main forex-event – tomorrow’s ECB meeting – is yet to come, investors having little reason to change their positions until after Draghi’s latest comments.
All this meant that the European indices continued to pull back from the dramatic losses that saw back at the very start of the session. The DAX underwent the largest transformation, and is now up 0.8%, while the CAC rose 0.3%. And though the FTSE is still down 0.3%, that’s less than half the decline it saw at lunchtime.
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