Despite the Dow Jones avoiding the same, the European markets were unable to ease their own losses this Monday.
There were 2 perspectives on this afternoon’s 8-year low US existing home sales figure of 3.91 million. One that it was far worse than forecast, and well, an 8-year low as mentioned; the other was that June has seen a decade-high number of mortgage applications, suggesting that sales should rebound fairly healthily when the current month’s numbers are released.
This is potentially why the Dow found itself effectively flat after the bell, investors ignoring the news that the WHO had seen a record number of new coronavirus cases, with the brunt coming from North and South America.
Europe wasn’t quite as sanguine, especially with the pound and euro rising 0.7% and 0.6% against the dollar respectively. The FTSE, which had kept its losses at the trimmer end of things, found itself down 0.7% and the wrong side of 6250, while the DAX and CAC fell 0.8% apiece.
Tomorrow morning could help set the tone of trading for the rest of the week, as June’s flash manufacturing and services PMIs from the UK and Eurozone are released, with the US figures following in the afternoon. Every region is expected to see varying degrees of improvement month-on-month; the size of that improvement, however, may well dictate on which side of the green/red divide markets find themselves.
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