After last week saw the market-wide June rebound stall, the European indices tried to pick themselves up on Monday, even if their gains were decidedly milquetoast.
That’s because the week’s defining event – the Federal Reserve meeting and subsequent statement – isn’t until Wednesday evening, leaving the markets in something of a difficult position.
The FTSE tried to keep itself the right side of 7350, lifting past that level as it added around 15 points. The index’s banking sector helped ensure it started the morning in the green, with Barclays (LON:BARC), Standard Chartered (LON:STAN) and RBS (LON:RBS) among the morning’s best performers.
The DAX and CAC were similarly timid in their initial growth. The German bourse re-crossed 12100 as it climbed 25 points, while the CAC pushed to 5380 with a slightly more robust 0.4% increase.
Sterling once again failed to display any consistent interest in the Tory leadership battle. The currency can perhaps be forgiven, however, for ignoring Sunday night’s Channel 4 debate given that it featured 5 men effecting fighting for 2nd place behind absent front-runner Boris Johnson. Maybe Tuesday’s night’s televised tete-a-tete on the BBC will spark a bit more movement, one the field has been narrowed even further. For now the pound trickled 0.1% lower against both dollar and euro, remaining trapped at 5 month lows.
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