A groggy start has given way to some decent growth this Monday, with European investors seemingly ignoring China’s 3-month lows to focus on the political progress in Germany.
After a brief journey to the wrong side of the tracks the FTSE is back above 7400, climbing 20 or so points as its commodity sector – by and large – reversed its early losses. This growth comes despite the pound pushing 0.1% higher against the dollar, with cable sporadically crossing the $1.335, its best level since the start of October.
Like in the UK, the eurozone indices overcame a negative open to tick higher. The DAX and CAC are both up 0.2%, leaving them just below 13100 and 5400 respectively, while the IBEX 35 is leading the region with a 0.6% rise. As for the euro, it has spent the morning grazing a fresh, $1.195-crossing 2 month peak against a fairly weak dollar (the greenback is also down 0.3% against the yen).
Looking to this afternoon and the Dow Jones is set to join in with the day’s mild gains. The futures have the index climbing 0.1% after the bell, keeping the Dow in the vicinity of the 23600-plus all-time highs it has struggled to reach in the last week or so. There isn’t really any data to help the index reach that target, with the latest new home sales reading – forecast to fall from 667k to 627k – all that’s on offer.
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