Things were very mixed this Tuesday, the markets abandoning the uniform trading seen in the last few weeks for something a bit more complicated.
After having a day off on Monday, missing a session where the European indices lost their bottle, the Dow Jones decided to make sure caught up with its peers, dropping 100 points to settle just below 25100. The dollar’s rebound seems to be informing the Dow’s decline, with the greenback up 0.1% against the pound, 0.5% against the euro and 0.6% against the Japanese yen.
Those forex movements helped dictate the situation elsewhere. With the euro also dropping 0.4% against sterling following a pair of disappointing – if better than forecast – German and eurozone ZEW economic sentiment reading, the DAX and CAC were in a very good mood, rising 0.7% and 0.5% respectively.
The FTSE wasn’t quite enthusiastic. Though it recovered from its lunchtime lows, the UK index couldn’t gain any ground, with investors dissuaded by a solid showing from sterling and the triple-whammy drag of HSBC (LON:HSBA), BHP Billiton (LON:BLT) and InterContinental Hotels Group (LON:IHG), all of which suffered chunky 3.0% to 4.5% losses in the aftermath of their respective latest results.
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