Despite the White House heightening the trade war rhetoric with a 35-page report – the snappily titled ‘How China's Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World’ – the European markets broadly mounted a rebound after the bell, if a rebound of varying quality.
The FTSE led the way in terms of the early gains, climbing 0.8% to tickle 7670 having fallen as far as 7540 on Tuesday. All of the major sectors were in the green, with the fact Brent Crude is back above $75.50 per barrel following a half a percent rise certainly helping the UK index have the edge over its eurozone peers.
The pound wasn’t as fortunate as the FTSE. Against the dollar it dipped another 0.1%; and while that may not sound like a lot, it leaves cable straining to hold its head above $1.315, its worst price in 7 months. Sterling also slipped 0.1% against the euro, keeping it at a near one week low against the single currency.
A combination of the ham-fisted way the government is going about Brexit, alongside June’s impending Bank of England meeting, is preventing the pound from ending its ugly losing streak. Really, the currency is in desperate need of a hint of hawkishness from Mark Carney and co. on Thursday – even just the tiniest morsel – if it is going to bounce back any time soon.
Considering the extent of the losses suffered so far this week, the gains seen in the eurozone on Wednesday might as well have not happened. The DAX rose 0.3% to 12730 – it started Monday at 13070 – while the CAC couldn’t clamber back cross 5400 after managing a meagre 0.1% increase.
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