By Connor Campbell, Financial Analyst for Spreadex
With Barclays (LON:BARC) reversing its early gains to join the rest of the banking sector in the red, and the miners in revolt, the FTSE finally fell back below 7400 this Friday.
The UK index dropped 50 points as the morning went on, taking it back to the levels it struck on Monday and then spent most of the week desperately trying to recover. For once the FTSE’s misery wasn’t accompanied by any positive movement from sterling, the pound instead losing 0.2% against the euro while sitting flat at 1.3080 against the dollar.
The euro paired its sterling-growth with a 0.2% increase against the greenback, fuelled by a series of solid GDP readings and news that economic sentiment in the eurozone is at a 10-year high. Sadly for the DAX and CAC they couldn’t get a sniff at the region’s continued turnaround, instead plunging 0.7% and 1.3% respectively, with the German index at its worst price since in over 3 months.
This negativity looks set to infect the US open. The Dow Jones futures are pointing to a 45 point fall after the bell, taking the index away from yesterday’s 21800-tickling levels. That admittedly could all change before the session starts, however, since investors are yet to get their first glimpse at the USA’s second quarter GDP reading. Analysts are expecting a significant improvement on Q1, from 1.4% to 2.5% at the annualised rate.
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