Expecting a negative start for most of the day, by the opening bell the Dow Jones had managed to rally itself, jumping 330 points to cross 21950.
Compared that to one week ago, were the Dow was briefly hitting 18170, and it has undergone a fairly decent rebound in the last 7 days. Look at where it started March, on the other hand, and the index is still in trouble, just over 3000 points adrift of those 25100-plus levels (let’s not even go into where the index was in mid-February).
A positive start from the US – though not the kind of start that necessarily has the robustness to carry through to closing time – helped ease the European indices into the green.
Completing its turnaround, the DAX added 1% itself, a 180 from the losses it saw at the start of the session. The DAX was more reticent, only managing a 0.2% increase.
The FTSE was at the French end of that spectrum, adding 25 points having been down as much as 90 points during the morning’s trading. That the index has posted any growth at all is notable, however, given that Brent Crude has seen its own losses intensify from 6% to 9.5% as the day went on, forcing the black stuff under $22.50 per barrel. Crucially for the FTSE, BP (LON:BP) and Shell (LON:RDSa) lifted themselves off their lows, even if their 1% and 2.1% respective rises fell short of the near-3% growth seen at lunchtime.
Monday may end up being an outlier once the week is over and done with, as it’s the only day without a real data challenge for the markets. Setting the stage for the European open, Tuesday sees the latest manufacturing and services PMIs out of China. With the coronavirus slowing down in country as February turned into March, analysts are expecting the former to bounce from 35.7 to 44.9, with the latter looking at an even more impressive rebound from 29.6 to 42.1. If accurate, that could give investors something to cling onto come tomorrow morning.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."