Continuing the good vibes set off earlier in the session, the Dow Jones rocketed higher on Monday as investors processed Steven Mnuchin’s comments surrounding the long-brewing trade war between the US and China.
The Dow surged more than 300 points after the bell rang on Wall Street, a chunky addition that took the index back across the 25000, a level that had eluded the index last Monday, for the first time since mid-March. The dollar also remained chipper, its half a percent rise against the pound complimented by a similar 0.5% jump against the yen and a 0.2% increase against the euro.
Investors seemingly haven’t been put off by the general lack of specifics surrounding what was actually agreed between the US and China, crucial details like the extent to which America’s deficit with its rival will be reduced by and how this new trading ‘framework’ will be implemented. It helps that there has been little in the way of data or other economic news to challenge these developments for headline-dominance, allowing the markets to indulge in a bit of bullishness.
That bullishness arguably most benefited the FTSE, which piggybacked on this wave of market-relief, alongside the pound’s politically fragile Brexit problems, all the way to a fresh record peak. Crossing 7850 for the first time in its history following a 1% surge, the FTSE now has 8000 in its sights – and with a pair of much-anticipated inflation and GDP readings on Wednesday and Friday respectively, the index could just get the boost it needs if sterling is dealt another dovish blow.
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