Though the Dow Jones opened sharply lower, in a rare sight the European indices didn’t double down on their own losses, instead cutting the morning session’s slump in half.
The Dow quickly shed 6% once the bell rang on Wall Street, taking the same comfort from the Fed rate cut/quantitative easing programme as its peers across the pond – i.e. none at all. This 1400 point plunge left the US index at 21700, above the sub-202350 lows struck briefly after the open.
Finding a smidge more confidence that was seen at that start of the day, the FTSE managed to claw its way back to 5150 – now small feat given that at one point it was trading under 4850 for the first time in 8 and a half years.
This sort of-recovery was echoed in the Eurozone. The DAX was down 2.4%, a colossal improvement on its 7.8% lunchtime dive, while the CAC underwent a similar turnaround, reducing its losses from 9.3% to 3.4%.
Now Europe just has to cling onto those levels until closing time. As for the Dow Jones, it tends to save its big moves for a bit later on – even at its current 6%-plus decline, precedent would suggest that a rally isn’t out of the question. Where the news to prompt such a swing would come from, however, is another matter entirely...
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