After another hellacious Monday – the Dow Jones closed out 13%, or nearly 3000 points, lower – the markets attempted to rebound this Tuesday. Though, as ever, the early moments of European trading can usually be taken with a pinch of salt, how little they seem to impact where equities are by the end of the session.
Hoping for a wave of financial support for businesses – the US airline sector has asked for $50 billion, while France has pledged €45 billion in support for its firms – the European indices strove to claw back yesterday’s losses. But almost immediately the rebound seemed on rocky ground.
At one point tickling 5400, the FTSE saw its gains shrink to around 1.8% within moments of the open. And the FTSE 250 wasn’t even as lucky as that, sinking by another 1.7% Less than a week after his first annual budget, Chancellor Rishi Sunak is expected to make another appearance today, likely revealing a fresh package of stimulus for the UK’s in-danger businesses.
The DAX echoed those gains, climbing 1.8% to near 8900, while the CAC was slightly ahead of its peers, added 2.1% to knock on the door of 3950.
As has been the case every time the European markets have tried to rebound, it is not going to be smooth sailing. Similarly, the various interventions made by governments and central banks around the globe to try and reassure investors have so far failed to succeed, making Tuesday’s potential burst of stimulus a curious proposition from a trading perspective.
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