At the moment May is looking like a mere blip for the Dow Jones.
June saw the index overcome the previous month’s losses thanks to a dovish Federal Reserve, and now July has opened with a fresh all-time high for the Dow, climbing towards 26850 following the latest US/China trade truce. That means the Dow Jones is now up around 15% in 2019, a sharp rise admittedly informed by the equally drastic decline see in the final quarter of 2018.
A big, triple-digit start from the US index meant that the sizeable gains in Europe were allowed to continue, if at a reduced pace in the Eurozone. The FTSE held above 7500 as it climbed more than 1%, but the DAX had to settle at 12550 after it lost a quarter of its early growth.
The pound, already in trouble against the dollar, was weakened by a far worse than forecast UK manufacturing PMI. The reading for June came in at 48.0 against the 49.5 forecast, the sector’s softness leaving sterling down half a percent against the greenback – cable is now at a near 2-week low of $1.264 – and 0.1% against the euro, which also suffered from disappointing manufacturing data.
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