After a relatively composed start to the session, the European losses started to accelerate on Tuesday, with a pessimistic US open in sight.
Initially it looked like the FTSE was going to be able to avoid the kind of trade war-fearing decline suffered by its non-Bank Holidaying peers on Monday, the belated blow softened by reports that vice-president Lie He was heading to Washington on Thursday to continue talks with US negotiators.
However, that dam failed to hold back the swell of investor-concerns for long, with the FTSE sinking nearly 1%, returning to a one-month-plus low just above 7300. This as its commodity and banking stocks – the latter also hurt by the uncertainty over whether or not a cross-party Brexit compromise will be reached – tanked.
The Eurozone indices, which had briefly recovered some of the ground lost on Monday, were in a similar predicament. The DAX and CAC were both down 0.6% apiece, tumbling to 12230 and 5430 respectively.
The Dow Jones is facing the same kind of showing when the bell rings on Wall Street. Having rallied before the end of trading on Monday, the index is set to drop 120-ish points, a move that’d leave it just above 26300.
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