Without a US open to change things up the European markets remained stubbornly in the red on Wednesday.
The FTSE continued to loiter at 6950, stuck at a 2 week low having struck a 3 week peak on Monday. The UK index was joined in the doghouse by its Eurozone peers; the DAX fell 100 points, roughly half of its peak losses, while the CAC found itself down 1.2%.
That the markets managed to condense a whole cycle of trade war fretting into the first half of the week is impressive: from the giddy, gullible highs of Monday to the Trump-fearing lows see on Wednesday. It’s going to be interesting to see whether the relationship between the USA and China remains the defining story on Thursday morning or if, in the absence of a proper overnight session from America, things might be a bit calmer come the starting bell.
What could easily step into any news-void is Brexit. Sterling spent much of the day in a surprisingly good mood, choosing to focus on what few positives it can, namely the success of Dominic Grieve’s amendment arguably reducing the likelihood of a no deal divorce. However, its confidence gradually ebbed away as the afternoon went on, the pound’s gains cut to just 0.1% against the dollar and 0.2% against the euro.
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