The Dow Jones fell 230 points on Tuesday, joining Europe in erasing Monday’s overly optimistic growth.
Taking the Dow back towards 20060, the index suffered from the same concerns as its European peers. That is, the ballooning number of covid-19 cases in the US, the announcement of a 6-week re-lockdown for Melbourne, and a series of ugly GDP forecasts from the European Commission.
A far better than expected JOLTS job opening readings maybe helped out the Dow Jones post-bell, with the figure hitting 5.4 million for May, against the 5 million in April, and the 4.7 million estimated.
The US open allowed the Eurozone to slightly ease its losses. Very slightly, that is – the DAX was still down 1.3%, with the CAC dropping 0.9% (despite France suffering once of the sharped GDP revisions from the EC).
The FTSE, however, was unable to pick itself up, instead sinking further into the red. Falling 1.7%, the index ducked back under 6200, undoing all of the arguably naïve gains it made at the start of the week.
The UK index was hindered by a strong showing from the pound. Cable hit $1.256 as it rose half a percent, while against the euro sterling shot up 0.9% to €1.1136, both levels the best it has seen in the last 3-weeks.
News that Michel Barnier and David Frost will have dinner at No. 10 this evening, ahead of the start of informal Brexit talks between the UK and EU tomorrow, has lifted the currency, providing a bit of hope in a situation that seems pretty damn dire for those wanting to avoid a no deal future.
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