With countries across the world – notably France, Italy, Spain, Australia and New Zealand – aiming to ease some of their lockdown measures this week or next as they try to find the ‘new normal’, the markets rebounded hard on Monday.
Though we have no idea when the terms of lockdown will be altered, let alone ended, in the UK, the examples set by its global, and especially European, peers still sent the FTSE sharply higher. Climbing close to 100 points, the index neared 5850, pushing it towards a 2-week peak.
What happens in those countries easing restrictions should be illustrative for the UK government, and could help dictate what the returning Boris Johnson and his cabinet choose to do next. This is especially true of Italy – the first European country to go into lockdown conditions 7 weeks ago, it is sure to be the most scrutinised nation when it comes to assessing what measures can be lifted, and when.
Interestingly, the pound joined the FTSE in climbing higher on Monday, rising 0.6% against the dollar and 0.3% against the euro. This meant sterling was perhaps ignoring reports from the Sunday papers that Boris Johnson has been advised the current Brexit trade talks with the EU are on course to fail.
Understandably the Eurozone was that bit higher than the FTSE. The DAX climbed 250 points as it teased 10600, while the CAC struck 4450 thanks to a 2% increase.
As for the Dow Jones, despite America’s mess of coronavirus contradictions on a state-by-state basis, the index is still set to add another 200 points this afternoon. That’d take it within touching distance of the 24000 level it has struggled to hold above with any real longevity of late.
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