Even with a blockbuster open from the Dow Jones, the FTSE couldn’t catch the same USCMA-bug as its peers as the day went on.
The Dow Jones had something of a tough end to September, an otherwise excellent month petering out in the final week. It got its mojo back on Monday, however, investors more than willing to celebrate the trade agreement reached between the USA and Canada, the latter joining August-signees Mexico to finally secure the replacement to the Trump-burned NAFTA deal.
The index rocketed more than 250 points higher as the bell rang on Wall Street, allowing it to once again cross 26700, and leaving it achingly close to a fresh record peak. Arguably the Dow’s jump was less due to the specifics of this new North American agreement, but rather the emerging pattern in regards to the resolution of Trump’s trade conflicts, and what that could mean for the war between the US and China.
This US positivity only upped the intensity of the gains in the eurozone. The DAX reclaimed 100 points – not enough to get it back to its pre-Italian budget levels, but a start – while the CAC held above 5500 as it rose 0.3%.
Absent from all this was the FTSE. Instead the UK index ducked under 7500 as it fell 0.3%, prevented from posting any growth by a red mining sector (copper led the way with a 1.1% decline following disappointing manufacturing data from China), the lingering effects of the Italian budget fallout on its banking stocks and persistent losses from its house builders. Sterling’s gains didn’t help either, with the pound rising 0.2% against the dollar and 0.3% against the euro.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.