The European markets remained buoyant in the aftermath of President Xi’s openness-eyeing speech, with the prospect of some sizeable growth to come from the US session likely to keep the gains going.
Though it trailed its more ebullient peers, the FTSE still managed a respectable 40 point rise as the day went on, a move that took the UK index back above 7200 and to levels not seen in around a month.
This came despite a decent showing from the pound; sterling jumped 0.2% against both the dollar and the euro, keeping above $1.415 against the former while knocking on the door of €1.15 against the latter. That’s because the currency got a bit of a boost in the form of some pro-rate hike comments from Ian McCafferty – the gains only weren’t larger due to the MPC member’s already well-known hawkish stance.
As mentioned, the certain elements of the eurozone were more than ready to embrace the idea that the US and China are stepping back from the trade war brink. The DAX surged over 140 points, leaving the German index to dance around the 12400 mark for the first time since the middle of March.
Looking ahead and the Dow Jones is all set to leap 320 points after the bell, a chunky jump that would take the beleaguered index to 24300, pushing it towards the top end of its recent trading bracket. However, it is important to note that the US open and close can often operate in completely different universes, especially if Trump give into his urge to cause a bit of Twitter chaos.
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