Was there reason for the markets to rise on Tuesday? No. Nothing has materially changed in the key areas – well, area – that caused Monday’s costly carnage. But rise they did, rebounding with varying degrees of vigour.
Admittedly, the Dow Jones was less keen to climb than its European counterparts. The US index only added 40 points once trading got underway stateside, leaving it short of 27,200, and effectively still at yesterday’s 7-week nadir.
The impending presidential election, and the unresolved feelings around the American tech sector, are making US investors more reticent to rebound than those found elsewhere. Then again, there is plenty of time left before last orders, so the Dow could stretch its limbs yet.
The DAX led the way on the continent, nearing 12,700 as it took back 170 points. With France one of the worst hit countries in Europe the CAC lagged behind, but nevertheless rose 0.8% to stick its nose across 4800.
Adding 1.2%, the FTSE 100 found itself nearing 5870, taking the edge off of yesterday’s lows without really making a dent in the ground ceded. The FTSE 250, meanwhile, swung in the green by around 0.3%, after dipping half a percent at the start of the day.
Tuesday’s been pretty quiet, all told. Wednesday will see the markets face more of a test, in the form of September’s flash manufacturing and services PMIs. The latest readings will give investors a chance to assess whether the global economic recovery is slowing, or if it has stalled out completely.
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