Though still bad, there was a definite improvement in the fortunes of the European indices as Thursday went on.
The FTSE saw the largest turnaround. At points after the bell down 2%, striking a 28 month nadir in the process, it shrank its losses to a comparatively manageable half a percent. This came despite not only a commodity sector redder than Rudolph’s nose, but the pound’s decent showing against the dollar.
Cable climbed 0.6%, doubling its early gains as the latest UK retail sales reading smashed expectations, at 1.4% versus the 0.3% forecast; against the euro it was less successful, however, remaining down 0.3%.
While they weren’t quite as robust in their loss-reduction as the FTSE, the DAX and CAC were nevertheless off the day’s lows. The German index slipped 120 points to loiter just above 10650, with its French cousin falling 1.5% and clinging on to 4700.
Helping matters was the fact that the Dow Jones futures are now showing a flat open for the US index, rather than the 300-odd point plunge threatened earlier in the session. Now, that kind of performance doesn’t alter the chances of the Dow avoiding its steepest December decline since the Great Depression, but it is at least better than the alternative.
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