While trading improved as the day went on, the markets were in no way chipper, the US open extending another bleak start to a week.
Falling 120 points after the bell – not as bad as the 200 point fall forecast, but not exactly great either – the Dow Jones fell prey to the same fearful trading that blighted the European session. Stuck just above 24100, the index finds itself at its worst levels in 2 months, a pair of strong Markit and ISM manufacturing PMIs meaning little in the face of the war of words between Trump and the EU.
Those manufacturing figures – the Markit reading came in at 55.4, with its ISM counterpart at a 4 month high of 60.2 – were very well received by the dollar, however. Already boosted by its safe haven status in the eyes of investors, the greenback furthered its gains against the pound and the euro; cable was sent back towards $1.31 after tumbling 0.6%, while the single currency $1.16 following a half a percent fall.
Their currencies’ respective woes helped ease the situation in the eurozone and, to a lesser extent, the UK. The DAX saw the greatest turnaround, reducing an initial 1.4% loss to a comparatively negligible 0.3% drop; the CAC, meanwhile, managed to halve its own substantial decline to a still unpleasant 0.8% fall. The FTSE, on the other hand, wasn’t quite so lucky, maintaining a 1.1% decline, one that kept it the wrong side of 7600.
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