Investors will be hoping that Monday’s early gains means the market has cauterized its wounds following last week’s bloodbath.
Of course, as proven time and again, these things can turn on a dime, and it is way, way too early to treat the day’s initial growth with anything but caution. Still, the FTSE climbed more than 1% after the bell, taking it towards 7170, with the CAC up 1.2% and the DAX leading the charge thanks to a near 1.7% surge, one that leaves the German index back above 12300. Importantly the Dow Jones currently looks set to follow in Europe’s footsteps, with the index’s futures pointing to a 170 point rise later this afternoon.
The forex markets were slightly more subdued. Both the pound and euro tried to claw back some of their recent losses against the dollar; the former rose 0.2%, but is still the wrong side of $1.385, while the latter jumped 0.3% to tease $1.227. Against each other, meanwhile, there was nothing to separate the two, with sterling flat around €1.128.
There isn’t really that much for investors to work with this Monday, with the focus likely on Tuesday and Wednesday’s potentially week-defining UK and US inflation readings. However, there will be some interest in what MPC members Gertjan Vlieghe and Ian McCafferty – both of whom speak today – have to say following last Thursday’s hawkish statement from the Bank of England.
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