The Dow Jones extended the market-wide rebound this afternoon, as investors continued to prepare themselves for tomorrow’s Fed meeting.
The Dow jumped 140 points after the bell rang on Wall Street, helping lift the index from yesterday’s lows while still leaving it a way off the levels struck this time last week. Beyond the ongoing Facebook (NASDAQ:FB) crisis causing concern in the tech sector, the Dow hasn’t had too much to deal with this Tuesday, allowing it the freedom to rebound ahead of the likely nail-biting, jittery pre-Fed trading that’s set to occur on Wednesday.
With the Dow in a decent mood the European indices could maintain their early growth. The DAX and CAC rose 0.5% and 0.4% respectively, indulging in the fact that the euro is down half a percent against the dollar and 0.3% against the pound following some god awful, trade war-fearing ZEW economic sentiment readings.
As for the FTSE, it held onto the same 0.4% increase it had seen since the start of the session, with the pound pairing its gains against the euro with a 0.1% dip against the greenback. It’s interesting that the February’s UK inflation reading had almost no effect on the markets this Tuesday; it suggests that the month-on-month decline has done little to dissuade investors that a May rate hike from the Bank of England is still likely on the agenda.
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