Just about shaking off a post-Fed hangover, the markets managed to turn positive as Thursday went on.
In what has so far been a disappointing reversal following last Friday’s record peak, the Dow Jones attempted to buck the week’s downward trajectory after the bell, pushing back towards 26450 as it rose 50 points. Granted, that is not a huge move higher, and leaves it around 300 points shy of the levels struck just over a week ago; however, given it is less than 24 hours after the Fed’s interest rate rise and December hike-suggesting statement, it’s a decent enough start.
The positive US open led to improvements elsewhere. Despite its miners wilting as copper fell nearly 1.5%, and Shell (LON:RDSa) giving up its early growth as Brent Crude pulled back to $81.50 per barrel (BP (LON:BP) remained up 0.8%), the FTSE still managed to rise 0.3%. That sent it to a fresh near one-month peak of 7540, the UK index benefiting from the fact the pound couldn’t shake its losses against the dollar.
As for the eurozone, ignoring that the FTSE MIB is down 0.9% (even then, half of its initial decline), the region posted a fairly impressive turnaround this Thursday. The DAX, which started the day with a 1% drop, rose 0.2% to re-cross 12400, while the CAC climbed past 5500 with a 0.4% increase. That’s because the euro remained under pressure in light of the Italian budget dispute, with the single currency falling 0.6% against the dollar and 0.2% against the pound.
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