The European markets resumed their decline after the bell, investors finding little to prevent another day of losses.
Though it did end up losing 30 or so points, Tuesday could have been a lot worse for the FTSE, with the index at points trading the wrong side of 7200. It hasn’t quite returned to that nadir just yet this Wednesday, instead dipping 0.3% to lurk around 7215. Still, that leaves the FTSE at its worst price in almost 6 months, and already 300 points lower than where it started the month.
As for sterling, despite enduring its own roller coaster on Tuesday, it came out the other end all the stronger for it. Following reports from the Dow Jones that the UK and EU might be nearing a Brexit deal, potentially as soon as Monday, cable found its way back to a 2 week peak of $1.316. Against the Italy-damaged euro, meanwhile, the pound added another 0.2% to hit a 4 month high of €1.146. Now the currency needs to carry those gains through the latest UK GDP reading, with analysts expecting a drop from 0.3% to 0.1% month-on-month.
Over in the Eurozone the Italy-EU budget battle appeared to continue to be a confidence-eroding issue for investors, with the DAX and CAC slipping 0.4% and 0.6% respectively. And while that leaves them above Tuesday’s intraday lows, the German index still finds itself, like its UK peer, at a 6 month low.
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