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Oil Losses & Sterling Rise Trim FTSE’s Losses, Dow Jones Aiming For 800 Point Rise

Published 06/04/2020, 12:47
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While the FTSE lost a step as Monday went on, the Eurozone bounded forward on hopes that the various lockdowns across the continent are having the desired effect.

The UK index’s main problem seemed to stem from the oil sector. Up as much as 3.6% after the bell, the FTSE saw its gains trimmed to just 2%, leaving it just above 5500. This as BP (LON:BP) and Shell (LON:RDSa) slipped into the red, falling 1.5% and 0.6% respectively, following the lead of Brent Crude, which was down 3.1%.

No doubt sterling’s own gains also hampered the FTSE. The pound rise 0.4% against dollar and euro alike, the currency reassured by housing minister Robert Jenrick’s claim – however accurate – that Boris Johnson would be ‘back at Number 10 shortly’ following his hospital admission.

In contrast to the FTSE, the Eurozone indices maintained their strength as the morning went on. The DAX rose 4.3% to near 9950, while the CAC remained a smidge shy of 4300 with a 3.3% increase.

The Dow Jones futures have slowed a tad from their initial promise, the index now looking at an 800 point increase rather than a 900 point surge. That would lift the Dow to 21850, at the upper end of the 21000 to 22000 trading bracket it has spent the last week or so living in.

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