Though Europe’s losses weren’t erased, the session’s mood was certainly helped by a positive start from the Dow Jones.
Adding 240 points, the Dow sauntered back across 26330, setting aside the covid-19 concerns that SHOULD be the focus – the number of new daily cases in the US is regularly coming in above 60,000; California is back in lockdown – in favour of an earnings season side-plot.
Posting substantial beats in almost every category thanks to a super-charged increase in trading revenue – ironically, in that regard the company has benefited from the pandemic – JP Morgan (NYSE:JPM) helped set the tone for the Dow Jones, and therefore the rest of the markets.
This took some of the heat off of Europe, but not enough to prevent the DAX falling 1.2%, leaving it back at 12650.
The FTSE managed the biggest turnaround, cutting its losses to a quarter of what they were in the aftermath of this morning’s disappointing May GDP (and the subsequent warnings that came from the OBR). The UK index slipped 0.3%, benefiting from the pound falling 0.4% against the dollar and 0.7% against the euro.
There’s more data to test sterling on it way tomorrow morning, with the latest UK inflation reading. Analysts are expecting a retreat from 0.5% to 0.4%, a level last seen in the run-up to the Brexit referendum in the summer of 2016.
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