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Europe Remains Upbeat Thanks To Promise Of Fed Stimulus, Falling No. Of deaths

Published 18/05/2020, 13:02
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Though it is likely going to be another rough week of data – with the UK especially running a gauntlet, with the jobs report on Tuesday, inflation on Wednesday, flash PMIs on Thursday and retail sales on Friday – Europe’s optimism only grew as Monday went on.

With Jerome Powell promising that the Federal Reserve isn’t out of ammunition ‘by a long shot’, and the likes of Italy, Spain and the UK reporting their lowest number of coronavirus deaths in months, the markets found an excuse to start clawing back the losses incurred last week.

The FTSE saw its growth expand to 140 points, allowing it to cross 5940 once again. The DAX, meanwhile, saw a 330 point increase take it within touching distance of 10800, with the CAC bounding 100 points higher to near 4400.

Heading into the afternoon, the Dow Jones is aiming to add 1.3% after the bell. Though that might put the Dow behind Europe in terms of percentage growth, it is still a 300 point surge, one that would return the index to the 24000 it has so struggled to stay above since the crisis began.

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