A strong start from the Dow Jones allowed the European indices to expand their gains as Tuesday went on.
The US index jumped 150 points as the bell rang on Wall Street, the Dow leaping to 25650 for the first time since the end of February. It’s the latest example of investors picking and choosing when to focus on the ever-present trade war between the US and China, the Dow’s gains requiring the index to ignore S&P’s warning that the latter nation could shift from penalising goods to services.
Regardless, the strength of the US open was good news for Europe, which barrelled ahead with its rebound. The DAX and CAC rose 0.7% and 1.1% respectively, while the FTSE jumped 80 points. The UK index was fuelled by the sizeable gains in its commodity sector, with the oil and mining stocks allowing the FTSE to hit 7740.
As for the pound, while it managed to avoid weakening any further against the dollar, sitting unchanged at $1.294, it fell 0.3% against the euro. That drop, which came despite some more dodgy data from Germany, leaves sterling on track to close at its worst price since the end of November 2017, the pound flagging under €1.117.
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