As the Dow Jones joined Europe in the red, the FTSE continued to climb thanks to the pound’s latest plunge.
The Dow avoided a major decline after the bell, dipping 0.2% to duck back under 25600. That its losses weren’t larger is notable given that Beijing unleashed a classic trade war tit-for-tat this Wednesday, retaliating to America’s announcement of 25% tariffs on $16 billion of Chinese goods with the same levies going the other way.
The Eurozone indices were less sanguine about all this. The DAX slipped 0.4%, while the CAC shed half a percent, threatening to fall under 5500 in the process.
In stark contrast to its peers, the FTSE shot up 0.4% on Wednesday, lifting back above 7750 in the process. The main reason for this was the pound’s ‘no deal’ Brexit-ruined start to August; sterling dropped half a percent against both the dollar and the euro, hitting 11 and 10 month lows against the respective currencies. The pound gradually got worse as the day went on, with reports that Brexit might not actually be discussed at September’s EU summit in Salzburg appearing to contribute to the decline.
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