A strong open from the Dow Jones ensured that, so far at least, the week has gotten off to a smooth start.
The Dow displayed a broadly positive, if jittery, vibe after the bell, rising anywhere between 200 and 300 points to lurk around 24450, having fallen as low as 23250 at moments during last week’s turbulence. There is still a while to go in terms of the US session, however, and the Dow Jones has shown a predilection for saving its wilder behaviour for later in the day, so it’s really far too early to speak with any confidence about the index’s performance.
As for Europe, things were largely the same as they were this morning. The FTSE was up 1.2%, around 25 points shy of 7200, with the DAX rising 1.5% and the CAC climbing 1.2%. The pound, meanwhile, saw its gains against the dollar and euro dissipate, despite the hawkish comments from MPS member Gertjan Vlieghe; cable, which at one point had risen 0.4%, is now up just 0.1%, while against the euro sterling slipped 0.2%.
Monday’s gains may be welcome, but they came without much to test their worth. Tomorrow, on the other hand, will be a real challenge. The morning’s UK inflation reading is expected to slip from 3.0% to 2.9% month-on-month; even if accurate that very slight decline might not be enough to reassure investors fearing the increasingly hawkish tones of the UK’s central bankers.
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