As expected the Dow Jones fell after the bell, a shift lower that helped maintain, if at least not widen, Europe’s earlier losses.
Even the Dow is already off its day lows, a typically choppy start that has seen the index switch from a 170 point decline to a more manageable 100-ish point drop. This then saw the DAX and CAC hold at a half a percent loss, while the FTSE just about nudged into the green, even if it was only by a handful of points.
As for the pound, it couldn’t quite sustain the levels seen following the UK inflation reading from this morning. Against the euro it lost its way, slipping 0.2% to dip back below €1.125; against the dollar it was perkier, but even they it had to strain as hard as it could to keep above the key $1.39 marker it crossed earlier in the day. The euro, meanwhile, continued to make the most of the greenback’s weakness, lacking the inhibition of sterling to climb 0.7%.
Though the global indices are broadly negative, the markets haven’t coped too badly with a pretty damn hawkish UK CPI reading. It’ll be interesting to see if investors have the same kind of reaction to tomorrow’s US figures – after all, it was fears that the country’s inflation would continue to creep higher that helped spark the recent market bloodbath.
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