After a pretty boring start to the week the markets took a turn on Tuesday, notably slipping into the red.
It’s perhaps hard to pinpoint an exact reason for that decline – beyond what the week has so far been missing, i.e. the announcement of a ‘phase one’ agreement between the US and China. With the latter set to impose tariffs on another $156 billion in goods from the later this Sunday, the lack of a deal is only going to become more of an issue as the week goes on. Tuesday’s losses may well be a sign of that already.
The FTSE dropped 45 points, sinking back under 7200 in the process, while the DAX and CAC were down 0.7% and 0.4% respectively. As for the Dow Jones, that is looking at a 60 point fall this afternoon, one that, after yesterday’s late losses, would leave it below 27850.
It could be another quiet one from the pound. The currency opened flat against the dollar and euro, near its 7- and 31-month highs without doing much to improve on those prices. Tuesday does throw up the latest UK GDP reading – expected to bounce from -0.1% to 0.1% month-on-month – alongside the manufacturing and industrial production figures, so it will be interesting to see how much attention sterling is willing to pay to non-election news.
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