The Dow Jones got off to a slow-ish start this afternoon, as the dollar received a reprieve following the latest US data.
The Dow looked pretty tired after the bell, at the very best nudging 0.2% higher. It must be said, however, that of late the index has tended to save most of its energy for later in the US session, meaning it may well open up before the day’s close. And even if it doesn’t, at its current levels – just shy of 25250 – it has still managed a 3.7% increase since the start of the week, despite the hawkish US inflation readings on Wednesday.
As for the dollar, it is doing its best to take the edge off the week’s losses. Against the pound it has taken back 0.4%, sending cable below $1.405, while against the euro it has risen half a percent, taking the single currency away from the fresh 3 and a bit year highs struck earlier this Friday. Helping the greenback was an impressive selection of US data, including far better than forecast import prices and consumer sentiment readings, which came in at 1.0% and 99.9 respectively.
The European indices initially appeared unsure of what to do with this afternoon’s trading. On one hand they were pleased with the damage done by the dollar to the pound and euro; on the other, their enthusiasm was tempered by the Dow’s sluggishness. They eventually decided to look on the bright side of things: the FTSE hit 7290 after climbing 0.8%, with the DAX up 96 points and the CAC surging 1.1%.
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