German political drama continued to define the day’s trading, with the euro very slightly easing its losses on the latest developments.
Though the euro is still down 0.1% against the dollar and 0.4% against the pound, that’s an improvement on where it was just after the bell. The (admittedly almost imperceptible) turnaround appears to stem from the news that the Free Democratic Party – i.e. the party that walked away from the weekend’s marathon coalition talks, spooking the euro in the process – may be willing to support a minority government made out of Angela Merkel’s CDU-CSU and the German Green Party.
Both the euro’s decline and the minor signs of progress in Germany have helped the DAX lift back above 13000 with a 0.2% increase, reversing the morning’s near half a percent decline. The CAC and IBEX have also risen, climbing 0.4% and 0.3% respectively on the euro’s weakness.
Even the FTSE has gotten into on the index-gains, despite the fact that sterling has paired its growth against the euro with a 0.2% rise against the dollar. The UK index has nudged 0.1% higher to sit at 7385, having struck a fresh 7 and a bit week nadir in the early moments of the session.
As for the US open, the Dow Jones is set to slip 0.1% after the bell, keeping the index the wrong side of 23350. There’s no data to speak of, meaning the focus will likely remain on the Republicans’ tax plan progress ahead of the Thanksgiving break.
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