The European markets began to rebound on Tuesday morning, managing to avoid further losses despite a tech wobble that bled from the US session into the Asian overnights.
Rising half a percent, the FTSE climbed back towards 7100. A better performance from its banking sector, some decent growth by Antofagasta (LON:ANTO) and Glencore (LON:GLEN), and a 5.5% jump from Vodafone (LON:VOD) following a mixed bag interim update, helped counter the reversal seen by BP (LON:BP) and Shell (LON:RDSa) after yesterday’s Saudi-assisted gains.
As for sterling – which had a tough start to the week as the Tories one step forward, five steps back approach to Brexit continued – it up against both the dollar and euro after the bell. Cable climbed 0.2% to tickle $1.288, while against its single currency cousin it rose 0.3% to cross €1.147.
Whether this growth can be sustained – or even built upon – is likely dependant not only on the latest Brexit news, but the state of the UK’s jobs report. The unemployment rate is set to hold at 4.0%, with the claimant count change forecast to fall from 18.5k to 4.3k. More importantly, the average earnings index is expected to jump from last month’s shock 2.7% to an even healthier 3.0%; if it manages to do so, it’ll be the best reading in around 3 years.
Over in the Eurozone the DAX and CAC got off to a (much needed) strong start. The German index added 100 points to pass 11400, while its French counterpart touched 5100 following a 0.8% increase. This on the day that Italy has to resubmit its controversial budget to the European Commission; the expectation is that the country’s government is sticking to its big spending guns, something that has the potential to undermine the Eurozone’s early gains as the day goes on.
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