With the Dow Jones closing above 32,900, Europe felt confident this Tuesday in reclaiming some of the ground given up following Monday’s spate of Oxford vaccine suspensions.
As sterling weakened against dollar and euro alike – GBP/USD felt half a percent, while the pound shed 0.4% against its single currency rival – the FTSE was free to push back towards 6,800.
That 0.7% increase for the blue-chip index was joined by a 0.6% rise from the FTSE 250. The mid-cap index was aided by the positive reaction to the latest update from Greggs PLC (LON:GRG). Though the high street bakery posted its first annual loss since its listing on the market in 1984, the promise of a ‘better-than-expected’ start to 2021, and the intended plan to open a further 100 locations in the next year, has helped the stock climb 6%.
Lacking the benefit of a retreating currency, the Eurozone indices weren’t quite as strong as the FTSE after the bell. Still, the DAX was back above 14,500 following a 0.4% increase, while the CAC is nearing 6,050 once again after adding 10 or so points.
At present the Dow Jones futures are keeping their cards close to their chest, with the index forecast to open flat this afternoon. The Dow could look increasingly jittery as Wednesday’s Federal Reserve meeting approaches – though if bond yields continue to pull back, the index could go into tomorrow night above 33,000.
"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."