The euro seemed to be the only real winner this Tuesday, with the currency managing a robust rise as seemingly everything else fell.
The Dow Jones joined in with the wider decline after the bell. The US index dropped nearly 150 points, hitting a fortnightly low as it struggles to keep its head above 23300 due to doubts about Donald Trump’s tax plan.
One of the main drivers of UK trading this Tuesday was the commodity sector. Brent Crude fell 1.1% on increased output in the US, while copper plunged 2% as China’s manufacturing production slipped from 6.6% to a worse than forecast 6.2% month-on-month. This all sparked a 2.5%-3% dive from the likes of Rio Tinto (LON:RIO), Anglo American (LON:AAL) and BHP Billiton (LON:BLT), with BP (LON:BP) also falling 0.7%, preventing the FTSE – which is down 0.2% – from enjoying sterling’s sharp decline against the euro.
It’s safe to say the eurozone indices are not best pleased with the euro’s recent comeback. The currency is looking pretty buff this Tuesday, surging 0.7% against the pound and 0.8% against the dollar thanks to a mixture of strong GDP and ZEW economic sentiment readings, and the various issues plaguing its rivals. This meant that the DAX shed another 80 points, leaving the German bourse at a fresh near 3 week nadir. The CAC, meanwhile, lost 0.6%, with the Spanish IBEX dropping under 10000 following a 0.8% decline.
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