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Markets Hit Brick Wall After Week And A Half Of Blockbuster Gains

Published 13/11/2020, 05:50
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The jubilation of the last week and a half was absent on Thursday, as, like any runner sprinting during a marathon, the markets hit a brick wall.

The Dow Jones’s losses were, admittedly, on the lighter end, the index down 0.4%, or around 100 points. That just about kicked it below 29,300, the Dow still unable to make good on the intraday record highs it struck earlier in the week.

However, the Dow’s limited losses, trending below the average seen elsewhere, would continue to suggest that investors currently aren’t too concerned with Donald Trump’s attempts to corrupt American democracy by, well, crying ‘corruption’.

In the Eurozone the DAX and CAC were the worst hit of the session’s major indices. The German bourse dropped 1.2%, while its French cousin slipped 1.3%.

By comparison the FTSE fell 1%, a smidge better than the DAX et al. thanks to the sharp drop-off seen by sterling.

The pound slumped 0.6% against the dollar and 0.9% against the euro, on a mixture of GDP disappointment – though the UK economy rebounded by 15.5%, September saw growth of just 1.1% – and no deal Brexit worries.

The mid-November deal deadline is almost upon us, with no agreement in sight, and Boris Johnson’s government internally in chaos after the departure of director of communications, and Dominic Cummings ally, Lee Cain.

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