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Dow Jones Gains Fail To Spur Rebound From European Indices

Published 09/04/2020, 06:02
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Bucking the trend seen throughout the morning session, the Dow Jones opened in the green on Wednesday afternoon.

The Dow really lost steam on Tuesday, from an 800 point surge after the bell to a red-tinged close. It will be hoping for a tad less drama today given it opened a comparatively measured 230 points higher.

That pushes the Dow back towards 22900, around 500 points shy of yesterday’s intraday, 4-week peak.

This wasn’t, however, enough to cause the European indices to reserve their losses. Instead the region’s indices, perturbed by the EU’s lack of cohesion regarding the coronavirus, remained in the red, undoing a chunk of the progress made in the first half of the week.

The DAX and CAC were both down 1%, slipping to 10250 and 4390 respectively. The FTSE, meanwhile, shed 70 points, sending the UK index back to 5625. Losses in its oil, mining and banking sectors didn’t help, nor did Tesco’s post-FY downturn.

Sterling also had a hand in keeping the FTSE in the red. The pound was up 0.4% against the dollar and 0.7% against the euro, perhaps related to news that Boris Johnson is ‘responding to treatment’ in intensive care. The currency may be given a bit more of a workout on Thursday, which sees the monthly GDP readings for the UK, alongside the manufacturing and industrial production numbers.

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