After mounting something of a recovery a lunchtime the Western markets lurched back into the red as Tuesday’s session went on.
Things had been going so well that the S&P 500 had hit a fresh all-time intraday high. And then, all of a sudden, investors got scared, with global indices quickly tumbling following that peak.
The Dow Jones did manage to keep its losses at the lower end, at least compared to Europe, with the index dropping around 90 points to 27770.
In contrast, the DAX was down 0.6%, just about keeping its head above 12850, while the CAC sank 0.9% to 4930.
The FTSE was even worse off, falling 1% to 6075. This as the pound took a 0.9% out of the dollar, compared to the euro’s 0.5% increase.
The dollar, and the global markets, appears to be struggling in the face of the latest US-China spat, i.e. the most recent round of restrictions placed on Huawei. There also the issue of the Congress covid-19 fiscal relief plan – or, rather, the lack of one, the Democrats and Republicans still unable to come to an agreement.
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