The Dow Jones continued the market rebound this Wednesday, investors setting aside – however brief that blind-eye ends up being – their concerns about the Italian political turmoil and China tariff flip-flop from Trump.
Leaping 150 points after the bell, the Dow re-crossed the 24500 mark it had abandoned as everything went wrong on Tuesday. That the US 2nd estimate Q1 GDP reading was revised lower, from 2.3% to 2.2% at the annualised rate, didn’t really impact the index, nor did a worse than forecast ADP non-farm figure, the Dow content to follow its European peers higher.
Over in the eurozone the broad recovery – France was the only major holdout – continued followed yesterday’s bloody losses. The DAX jumped half a percent, rising beyond 12700 in the process, while the FTSE MIB remained up by 1.5% as investors cross their fingers for a positive, pro-euro resolution to step into Italy’s current political void.
As for the FTSE, the index couldn’t really get anything going on Wednesday, spending the day clutching onto its negligible 0.1% rise. Tomorrow looks set to see the UK index similarly dependant on the sentiment from elsewhere to inform its trading – not exactly what it needs if it wants to get back to last week’s 7900-grazing all-time highs.
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