Tuesday’s post-trade war wobble rebound gathered speed as lunchtime approached, though the FTSE couldn’t quite keep up with its eurozone peers.
The UK index managed to climb around 30 points as the day went on, a rise that leaves it knocking on the door of the 7600 mark it abandoned on Monday. The FTSE would have likely been higher, however, if it weren’t for a couple of factors. Firstly, the pound benefited from the best construction PMI for 7 months, the 53.1 reading sending sterling up half a percent against the dollar – with cable teasing $1.32 – and 0.1% against the euro.
Secondly, and perhaps more pertinent, was the situation over at Glencore (LON:GLEN). The miner received a subpoena from the US Department of Justice related to possible money laundering, news that was greeted just as well as you’d imagine. The stock plunged 10% as details broke, forcing Glencore to its worst price in just shy of a year.
While the FTSE wheezed along, the DAX et al. were feeling far more positive. The German index rose 1.2% as Angela Merkel secured a border deal to avoid her CDU-CSU coalition from collapsing last night, those gains coming despite the agreement being subject to heavy scrutiny this Tuesday. The CAC followed suit, jumping 1% to re-cross 5300.
Turning to this afternoon and the Dow Jones is set to get in on the rebound, with the index facing a 120 point increase when the bell rings on Wall Street. That’d take the Dow back above 24400, and leave it in a decent enough position heading into Wednesday’s 4th of July celebrations.
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