The Dow Jones’ green start meant little to Europe, the region’s indices – especially the FTSE – still stuck in the red.
The US index actually ended up climbing 90-ish points after the bell, clearly taking some solace in former Fed chair Janet Yellen’s claim that last Friday’s yield curve inversion doesn’t necessarily mean a recession is on its way, but rather could indicate interest rates need to be cut. That increase pushed the Dow Jones back towards 25900, admittedly a price that is still a way off last week’s 26000-teasing highs.
Following on from the morning’s better than forecast German Ifo business rate reading – the first half-decent piece of data out of the country in a while, if still not too exciting – the eurozone indices managed to keep their losses to a minimum. The DAX dipped 0.2%, with the CAC falling 0.3%, that French drop half of what was seen at the open.
The FTSE was way behind the pack on Monday. Slipping half a percent, the UK index remained stuck the wrong side of 7200 and at a near 2 week-low, unaided by a slide in its commodity sector and the pound’s varying gains against the dollar.
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