With cable back teasing $1.42 the FTSE failed to make any headway in regaining yesterday’s 2018 low-hitting losses this Wednesday.
The UK index slipped a further 0.2% after the bell, keeping it flopping about below the 7590 mark. While the company isn’t actually part of the FTSE 100, Capita’s 35% plunge following its bad news hat-trick – profit warning, dividend suspension, £700 million cash call – seems to be informing the index’s early decline, especially since it comes so soon after the Carillion collapse.
As for the pound, it has risen 0.3% against the dollar, with the greenback’s attempts at a comeback already hitting a snag. Against the euro, meanwhile, sterling is effectively flat, with the rivals more focused on clawing back the ground they lost against the dollar – the euro is also up 0.3% – in the last couple of days.
Despite the euro managing the same kind of growth as the pound, the eurozone indices got off to a positive start, with the DAX and CAC rising 0.3% and 0.1% respectively. It’ll be interesting to see how the single currency behaves as the day goes on, with this morning’s main focus the latest eurozone-wide inflation reading. The euro may be disappointed if analysts are correct about the figure falling from 1.4% to 1.3%, though there is potential solace in the fact that the core number is set to rise from 0.9% to 1.0%.
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