Taking their cue from the Dow Jones last night, the European markets rolled out of bed and straight into the red on Tuesday.
It feels like we are entering a potentially choppy period for the markets. The US presidential election is about to become more of a pronounced presence, especially since a lack of pre-vote stimulus package – Nancy Pelosi’s 48-hour deadline ends tonight – means the outcome will dictate what kind of relief Americans receive.
And at the same time the covid-19 crisis is intensifying – and remember, we aren’t in the acute months of winter yet either – with the ominous shuttering sounds of more restrictions in Europe joined by rising positivity rates in several prominent US states.
Yesterday saw the markets swing from green to red, with the Dow staying there by the end of the session as it fell more than 400 points.
And though they weren’t as bad this morning, the European indices nevertheless struggled to find a reason not to slump even lower.
Dropping 0.4%, the FTSE found itself slipping further away from 5900, while the DAX was back below 12,800 following a 0.7% decline.
One hope for Europe is that the Dow Jones could give them a lift later on. The futures have the Dow taking the edge off yesterday’s losses, scheduling a 70 point increase when trading begins stateside. The index could be nervous, however, as it waits for the – likely predictable – outcome of the most recent negotiations between Pelosi and Treasury Secretary Steven Mnuchin.
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