As investors continue to await the outcome of the final Federal Reserve meeting before November’s election – which is hurtling towards us like a speeding train – the pound soured the FTSE’s session, seemingly thanks to some Brexit speculation.
Reports in The Telegraph of a ‘tentative, modest’ concession from the UK regarding the fisheries dispute with the EU, as David Frost travels to Brussels for an earlier than expected tete-a-tete with Michel Barnier, has raised hopes that a Brexit deal isn’t off the table, despite public tensions following the announcement of the UK Internal Market Bill.
Now, there have been plenty of negative headlines to go alongside that rumour. But, willing to cling onto any sign that a no deal exit can be avoided, the pound surged on the news, climbing 0.5% against the dollar and 0.9% against the euro. This put a bullet in the need of the FTSE’s rebound, sending the index 0.9% lower.
Even with the euro down against dollar and pound alike, the Eurozone indices erred in the side of caution. The DAX dipped 0.1%, while the CAC fell 0.4%.
Up 80 points, the Dow Jones once again opened above 28000. However, that’s the easy part. Now it needs to close the right side of that level, something it has struggled to do in the last week or so. Whether the Dow can pull it off will be down to the Federal Reserve, and what kind of guidance they provide for a potentially tumultuous end to 2020 for the United States.
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