Arguably somewhat arbitrarily, especially given the Asian losses overnight, the European markets tried to rebound at the start of the session.
With the death toll related to the coronavirus climbing to 106, including the first fatality in Beijing, it would appear that there is little reason for a green start to Tuesday. However, with the Dow Jones drastically trimming its decline by Monday’s close, and investors perhaps looking for a cheap(er) entry point after yesterday’s dramatic slide, Europe began to climb.
The FTSE added 25 points, dragging the index back towards 7430 having hit a sub-7400, 6-week low on Monday. The CAC rose 0.3% to near 5900, while the DAX lagged behind slightly with a 0.1% increase, just about keeping its head above 13200 – that’s 400 points shy of last week’s intraday all-time highs.
That those gains have already weakened in the moments after the open suggest the markets may face a struggle to keep in the green as the day goes on. Much could depend, then, on the state of the Dow Jones et al. after the bell rings on Wall Street. Currently the Dow is looking for a 0.4% jump to 28650.
Elsewhere, on the week that sees the UK leave the EU, and could possibly bring a rate cut in Mark Carney’s final outing as Bank of England chief, the pound shed 0.3% against dollar and euro alike. That took cable under $1.301 for the first time in a week, while leaving sterling the wrong side of €1.181 against its single currency cousin.
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