At the end of a volatile, hectic week, the European markets appeared to pause, nervously awaiting its latest directions from the US.
Neither the FTSE nor pound made much of Friday’s UK data. The GDP reading for July came in exactly as forecast at 6.6%, a slowdown from the 8.7% growth seen in June. Meanwhile industrial and manufacturing production both beat estimates, at 5.2% and 6.3% respectively.
Yet, waiting to see who will blink first in the high stakes game of chicken that is the UK-EU trade talks, the currency and index alike weren’t ready to make any sudden movements. The FTSE added 0.1%, keeping it the right side of 6000, with sterling rising 0.2% against the dollar and 0.1% against the euro. Given the extent of the week’s losses, the pound might as well have not bothered.
Following an empty ECB meeting on Thursday, the Eurozone indices were just quiet. The DAX dipped 0.1%, while the CAC was flat just above 5025.
Things could change this afternoon. Currently the Dow Jones is heading for a 170 point increase when trading resumes stateside, a rebound that it is in need of following last night’s 400 point plunge.
However, there’s been a pattern this week, of pre-market positivity turning into a dramatic sell-off when investors are actually faced with the opening bell on Wall Street.
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