The markets managed to avoid what could have been an ugly Tuesday, Europe’s sharp lunchtime losses easing as the afternoon went on.
It helped that the Dow Jones managed to eke out some growth after the bell rang on Wall Street. Instead of panicking over the news that China was seeking permission from the WTO to impose sanctions on the US, using the latter’s non-compliance with a dumping duties ruling as an excuse, the Dow nudged up by 0.1%, keeping it near 25900.
This allowed both the DAX and FTSE to halve their losses. The German and UK indices are now down 0.3% apiece, sitting at 7250 and 11950 respectively. So, still not great, but a darn sight better than the southwards direction things looked to be heading around midday.
As for the pound, what started off as such a bright day slowly fizzled out. Neither a better than forecast wage growth reading, nor news that Mark Carney would be staying on as Bank of England governor until January 2020, allowed sterling to build on Monday’s Barnier boost. In fact, the latter item likely contributed to the pound dipping 0.1% against both the euro and the dollar, with the currency disappointed that Carney’s contract extension wasn’t longer.
Stock of the day – WM Morrison Supermarkets (LON:MRW), Interim Results on Thursday 12th September
Will an in-form Morrisons continue to ignore the Sainsbury’s/Asda merger following Thursday’s interim update? Click the image below to watch the video.
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