The European markets slowed down somewhat as the morning went on, largely due to the further gains made by the euro and the pound.
Though the FTSE is still up 25 points, that growth is roughly a third lower than where it was just after the bell. That’s because sterling is flexing its muscles this Monday. Against the dollar the pound is up 0.6%, allowing cable to surge past $1.405 for the first time in 10 days; against the euro, meanwhile, it may be up a comparatively meagre 0.2%, but that still sees sterling hitting levels not seen since February 8th.
There were similar patterns of trading in the eurozone. With the euro up 0.4% against the dollar – lifting the single currency back towards $1.235 – the DAX saw its gains more than halve, from 0.9% to 0.4%, as lunchtime approached. The CAC faired a tad better, holding onto a 0.6% rise (though even then that’s down on its intraday peak). Of course, the euro’s growth will be tested by this afternoon’s testimony from Mario Draghi, with the ECB chief distinctly less hawkish than his UK and US peers.
Looking to the US open and the Dow Jones is on track for another big move this Monday. The futures have the Dow jumping 175 points after the bell, a rise that would take the index within striking distance of 25500, a level not seen in around 3 weeks.
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