Immediately Europe’s gains began to falter on Monday morning, uncertainties about the week’s impending data, falling oil prices and Donald Trump’s dangerous handling of the covid-19 pandemic.
The FTSE had started half a percent higher, re-crossing 5800, only to dip back below that level as it slipped by 0.3%. Its banking, mining and oil stocks all opened the week in the red, so it was always going to be hard for the UK index to cling onto its early gains.
The Eurozone indices were in a similar situation. The CAC followed the same trajectory as the FTSE, its initial growth swapped for a 0.1% decline. The DAX, on the other hand, clung onto a chunk of its gains, pushing 0.3% higher to loiter at 10650.
With the Dow Jones futures pointing to a 0.7% decline, it’s not surprising that the European indices may already feeling a bit anxious. That drop would still keep the Dow above 24050, however, leaving a good chunk of last Friday’s bounce intact.
It is likely going to be a week of rough data, arguably starting with the ZEW economic sentiment readings and the UK’s first coronavirus-relevant jobless claims number on Tuesday, Eurozone consumer confidence on Wednesday, and, most importantly, a wave of flash manufacturing and services PMIs on Thursday, alongside the usual shock of the US unemployment claims figures.
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