The fact yesterday’s Trump tariff threat remains just that – a threat – helped the markets rebound on Wednesday.
Just as it avoided the more excessive declines seen on Tuesday, the FTSE was the biggest winner as Wednesday went on, shooting up 90 points to effectively climb back to 7700. That the pound is dog-tired at a 7 month low against the dollar has played its part in the FTSE not losing its head like its eurozone and US peers, as has Brent Crude’s pre-OPEC meeting return to $75.50 per barrel.
The FTSE’s growth came despite a 5% fall from Berkeley Group (LON:BKGH). While the house builder upped its profit guidance for the next 2 years, it said that the £935 million in pre-tax profit – a 15.1% rise year-on-year – managed in the last 12 months was the firm operating at ‘peak’ levels. Combine that with news the number of homes being built in London had plunged 30%, and the stock hit a 2 month low, investors finally paying attention to the sector warning signs that have been popping up since 2018 began.
Though positive, in the wider context of the week so far the gains posted by the eurozone indices meant little. The DAX rose 0.3%, leaving it around 300 points off of where it opened on Monday, while the CAC just about crossed 5400 with its own 0.3% increase.
The Dow Jones looks set to be on the eurozone, rather than UK, end of the recovery spectrum, with the index facing a half a percent bounce after the bell. That would take the Dow back above 24800, lifting it off of Tuesday’s 2 week low.
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