The European indices continued to drift lower on Monday, despite the world markets as a whole hitting a 2019 high.
Ducking under 7220, the FTSE fell 0.3%, the index responding to losses in its banking and oil sectors, and the pound’s gains against the dollar and the euro. Cable rose 0.4%, re-crossing $1.293 in the process, while against the single currency it was up 0.1% and knocking on the door of €1.145.
Sterling may have gotten a bit of a boost from the confirmation of the Labour Party split, something that could potentially increase the chances of a solid Tory majority if a general election is called, and therefore create a clearer path to a Brexit deal (admittedly a lot of its and buts there).
The DAX was in a similar situation to the FTSE. The German index trickled 30 points lower, in part due to the euro’s own 0.3% increase against the greenback, lifting the single currency back above $1.133 for the first time since last Wednesday.
Monday’s rather uninspiring trading could continue this afternoon, with the session lacking the US markets due to Presidents’ Day. Given that the Dow Jones et al. have been the main drivers of trading in the last week or so, their absence will likely be felt.
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