Though the European indices eased slightly as lunchtime approached, the prospect of another rough US session could mean a return to those intraday lows.
The FTSE trimmed its losses from 5% to 3.8% as the morning went on, just about allowing the UK index to nudge its nose back across 5000. The FTSE 250, meanwhile, was also down around 3.8% as more and more retailers – like Card Factory, which fell close to 10% – announced that they are temporarily shutting up shop.
The Eurozone followed a similar pattern to the UK, cutting around 1% off their daily losses. That left the DAX down 260 points to 8660, with the CAC slipping 3.2% to a smidge under 3950.
As mentioned, it remains to be seen how Europe will hold up once the bell has rung on Wall Street. The Dow Jones futures are currently pointing to a 600 point fall – better than the initial 800 point estimates – one that would leave the US index the wrong side of 18600.
The key thing this Monday will be the progress of the stimulus package in the US, namely whether or not Republicans and Democrats can reach a bipartisan agreement to get the potentially $1.8 trillion plan in place.
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