By Connor Campbell, Financial Analyst, Spreadex
While the markets pulled back from their lunchtime losses, the US open couldn’t convince investors to put their Trump/North Korea fears to one side.
Though the Dow Jones largely managed to avoid the kind of drastic downturn seen by its European counterparts, it still fell 60 odd points after the bell, leaving the index just above the 22000 mark. For most of Trump’s tenure the Dow has left the dollar to deal with the President’s constant policy disappointments, so it will be interesting to see whether today’s drop marks a change in direction for the record-breaking index, or if it is merely a knee-jerk blip exacerbated by an empty economic calendar.
In Europe the indices were still looking pretty peaky this afternoon, if less sickly than they did earlier in the day. The FTSE has spent most of the day on the wrong side of 7500 following a 0.6% decline, while the DAX plunged to just above 12150 after falling 140 points. The CAC fared worst; not only was the French index dealing with the same nuclear tensions as the rest of the markets, but news of an attack on soldiers in Paris as well.
While the yen and Swiss franc remained up against the dollar – if at an admittedly reduced pace when compared to where they were at midday – the euro fell 0.2% against the greenback, the currency spooked by the events in Paris.
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