With the prospect of a decent US open on the horizon, the European markets levelled up their gains as Tuesday lunchtime approached.
Holding out for a positive resolution to the ongoing trade talks between the US and China, the FTSE added 70 points, touching 6880 for the first time in almost 4 weeks. Its Eurozone peers were just as optimistic; the CAC surged 1.5%, and is closing in on 4800, while the DAX, ignoring the chatter about Germany potentially sliding into a technical recession, was back above 10800 after climbing 90-plus points.
The Dow Jones is all set to follow suit, with the futures pointing to a 170 point, 23700-tickling rise after the bell. That’d be the Dow’s best level since 19th December, and see it more than 2000 points off its Christmas lows.
Given that there isn’t exactly a lot behind Tuesday’s rally – as in a lack of concrete detail leaking out of the meeting rooms in Beijing – there is every chance the markets could be setting themselves up for disappointment. Investors appear to be clinging onto US Commerce Secretary Wilbur Ross’ claim that there is a ‘very good chance’ can agreement can be reached before the end of the ceasefire on March 1st.
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