With a troublesome US open on the horizon, the European indices saw their losses intensify as Monday went on.
The FTSE was one of the worst performers at the start of the week. Not only was the UK index dealing with the same trade war fears gripping its peers, it also had to process Brent Crude’s 1.2% decline, a move that took the black stuff back towards $74.50 per barrel and left Shell (LON:RDSa) and BP (LON:BP) down 1.1% and 1.8% respectively. This in turn forced the FTSE 90 points lower, taking the index back under 7600 and only 50 points away from last Thursday’s 7 week nadir.
Plunging in step with the FTSE, the DAX dropped 1.3% as lunchtime approached, a decline that took the German index the wrong side of 12400 for the first time in 2 months. There were similar losses across the Eurozone, with the FTSE MIB falling 1.6%, the IBEX 35 down 1.3% and the CAC slipping 0.8%.
Looking to this afternoon and the Dow Jones is facing its own 170 point drop when the bell rings on Wall Street. That would leave the US index straining to keep above 24400, lurking at its worst price since the end of May. Whether these losses accelerate when the session gets underway will likely dictate the state of trading in Europe for the rest of the day, given the lack of data-distraction this Monday.
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