The US open was not a welcome sight for the European indices, with an ugly start from the Dow Jones infecting the FTSE et al.
The Dow Jones plunged a stomach-churning 300 points after the bell, hitting an 8 day low of just under 26150 as investors stared down the barrel of an incredibly hectic rest of the week. There’s the unknown of this evening’s State of the Union address from Donald Trump; the first Fed meeting of the year on Wednesday, with rising bond yields suggesting something hawkish; and a non-farm Friday that may become even more important than normal dependant on what the central bank say mid-week.
Interestingly the dollar, which had been mounting something of a comeback as recent as this morning, completely gave up the ghost this Tuesday afternoon. Having at one point fallen below $1.40, cable jumped 0.4% to re-cross $1.41, while against the euro, the greenback shed 0.3%, allowing the single currency back above $1.24.
All this spelt disaster for the European indices. The FTSE plunged 70 points, falling below 7600 for the first time in more than a month. The DAX and CAC, meanwhile, dropped 0.8% apiece, hitting 13210 and 5475 respectively.
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