Though some of the losses eased as the markets approached the day’s mid-point, the trade war backdrop meant that investors weren’t comfortable with taking the European indices any higher.
The FTSE continued to linger around the 7550 mark, lacking any oomph despite Brent Crude climbing back to $76.75 per barrel. The pound was similarly sluggish, drifting 0.1% lower against both the dollar and the euro as it awaited more details from the morning’s appearance from Mark Carney.
The eurozone, which had started the session rather sharply in the red, managed to largely sort itself out as the day went on. The DAX, which had struck a 12 week low, actually crept into the green, adding 15 or so points to re-cross 12250, while the CAC sat flat at 5290.
The European markets may struggle to remain so clam this afternoon, with the Dow Jones looking at a 90 point decline when the bell rings on Wall Street. That drop would force the Dow below 24200, and leave it in the ballpark of a fresh 8 week nadir. There is a smattering of US data on offer this Wednesday, with the core durable goods orders reading set to slip from 0.9% to 0.5%, but it is hard to see that playing too big a role how the rest of the session pans out.
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