The Dow Jones was keen to rebound on Wednesday, shaking off the Moderna vaccines doubts that plagued it on Tuesday.
Rising close to 400 points, the Dow returned to 24600, pretty much reversing the losses incurred last night thanks to some solid earnings, persistent optimism regarding a vaccine and the hopes of some more Fed stimulus down the line. That meant the Dow ignored Donald Trump’s latest inflammatory comments towards China, the President claiming it was the 'incompetence’ of Beijing that caused the virus to spread.
This buoyant start gave a helping hand to the European indices, which had initially been flagging at the day’s open.
The FTSE was up 0.6%, pushing the UK index back towards 6050. This as the pound fell 0.2% against the dollar and 0.6% against the pound. The fact Bank of England chair Andrew Baily refused to rule out negative interest rates – like Fed head Jerome Powell appeared to do last week – likely aided the FTSE and hurt the pound. Meanwhile against the euro specifically a better than forecast consumer confidence reading from the across the Eurozone gave the single currency a boost – it was also up half a percent against the greenback.
As for the Eurozone indices, the DAX rose 0.7% to 11170, while the CAC eked out a 0.2% increase, keeping it the right side of 4450.
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