In a hard to explain move, the European markets switched from mild losses to a solid round of gains, despite the prospect of a red start from the US.
It’s arguably difficult to justify how the markets have behaved this Friday, their growth coming in the face of a truly dire covid-19 situation in the United States and a faltering rally in China.
Yet the FTSE found itself half a percent higher, nudging above 6080. The DAX and CAC saw similar gains, jumping 0.6% and 0.4% respectively, benefiting from a pair of far better than forecast industrial production readings out of France and Italy.
However, this European optimism could well be tested this afternoon. The Dow Jones is heading for a 115 point fall when trading starts stateside, a decline that would take it under 25600 and leave it at levels last seen at the end of June.
The Dow is very much the market daddy in the eyes of European investors, so a downturn there could end up rippling through the rest of the boards. Then again, the Nasdaq is coming off an all-time high, so there is recent precedent for overlooking the Dow’s dreary performance.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."