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European Session Turns Toxic Ahead Of Potentially 500-point Plunge From Dow Jones

Published 20/04/2020, 13:16
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A session that began with tentative gains sank firmly into the red as the day went on, Europe at a loss ahead of what looks to be a rough start from the Dow Jones.

A 6.3% decline for Brent Crude became an unmanageable burden for the FTSE, which sank 1.2% following notable losses in its oil and mining sectors.

That still put the UK index ahead of the Eurozone indices, however. The DAX fell 160 points as it tumbled back to 10450, while the CAC slipped under 4450 as it dropped 1.5%.

Those losses may well accelerate once the US gets involved. The Dow Jones is currently facing a near 500 point reversal when the bell rings on Wall Street, one that would cause it to plunge under 23750, having closed last Friday at 5-week highs of 24250.

Tanking oil prices, anxiety over what is almost certain to be a tough data gauntlet – especially Thursday’s US jobless claims/flash PMIs pairing – and the deranged behaviour of Donald Trump are all contributing to the toxic tone of Monday’s trading.

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