Following Tuesday’s explosive gains, Wednesday’s open looked a little tepid in comparison, even if Europe did continue to push higher.
Despite cautious words from Fed chair Jerome Powell, Tuesday saw investors giddy at the thought of Trump’s potential $1 trillion infrastructure spending plan, a sharp rebound in US retail sales AND reports of a ‘major breakthrough’ regarding the use of cheap steroid dexamethasone in reducing covid-19 mortality.
The residue of those gains was seen on Wednesday morning, which saw Europe, initially exhausted after yesterday’s escapades, grow in confidence as the session gained traction.
Investors were clearly choosing not to linger on the situation in China, where government officials have warned that the latest outbreak in Beijing is ‘extremely severe’. Oh, and that multiple states are seeing record numbers of new cases on a daily basis in the US.
The FTSE started the session the strongest, adding 0.8% to cross 6290. This as investors ignored the fact the UK just posted its lowest inflation number since June 2016. Regardless of how the markets react today, May’s 0.5% reading adds another obstacle for the Bank of England to navigate during tomorrow’s meeting.
The DAX, meanwhile, was up half a percent to 12380, with the CAC eyeing 5000 following a 0.6% increase.
As for the Dow Jones, futures have the US index climbing 200 points after the bell, a rise that would leave it back at 26500.
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