With the Budget looming, the markets showed no signs of giving up the day’s rebound, with all of the major indices in the green.
Rising around 300 points, the Dow Jones proved more than willing to join in with the gains produced by its European peers at lunchtime. This jump propelled the Dow back towards 25000; still a long, long way off the 27000-teasing all-time highs that opened October, but a movement in the right direction.
The Eurozone remained Monday’s real standout. The DAX shot past 11400 as it surged 1.9% – this despite Angela Merkel’s decision not to re-stand for CDU leader (she is crucially going to stay on as Chancellor) – with the FTSE MIB rocketing up by 2.6% as S&P kept Italy’s credit rating unchanged in the face of the country’s budget-battle with the EU.
As for the FTSE, its 120 point climb lifted it above 7050, marking a near 200 point turnaround from Friday’s intraday lows. The pound, meanwhile, started to feel the pressure of the impending Budget, slipping back under $1.281 against the dollar as it dipped 0.2% (it did managed to push 0.1% higher against the euro).
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