The markets were a bit of a mess this Monday, lacking an overarching macro-direction despite the presence of some rather notable global issues.
The Dow Jones, wounded by last week’s Trump steel tariff talk and the ensuing international hoo-ha, fell quite sharply after the bell this Monday. Plunging half a percent the Dow is trying, and largely failing, to keep the right side of 24400, flirting with 3 week lows for much of the day. This even with a stronger than forecast, if worse than last month’s, ISM services PMI and a solid Markit reading, suggesting that investors are still focusing on the trade war Trump sees so set on sparking.
Meanwhile the eurozone indices – well all bar the FTSE MIB – seemed broadly content to work with the euro’s losses against the pound and the dollar rather than linger too heavily on the populist Italian election result. Now the political instability is definitely acting as a capper to the region’s gains; however, the DAX has nevertheless managed to eke out a 0.4% rise, with the CAC flat around 5130.
As for the UK, the Trump/Italian election stuff has arguably drawn a bit of heat away from last week’s Brexit concerns, allowing the pound to nudge into the green against its main currency rivals. This admittedly hasn’t been much help to the FTSE, which is down around 0.1% and stuck at 7075.
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