A session that had started so strong gradually went south, a low key US open failing to fix the situation in the Eurozone.
Dipping 75 points, the Dow Jones found itself slinking back under 25000 as the bell rang Stateside, investors perhaps unwilling to indulge in another rally without some news from the US-China trade talks in Washington. Alongside the non-farm jobs report, Friday’s trading could well be defined by what kind of noise is made overnight by the likes of Treasury Secretary Steve Mnuchin, Vice Premier Liu He and whoever else wants to provide a soundbite on the trade progress between the two superpowers.
The DAX went on quite the journey this Thursday. Having rocketed 1.2% higher to 11300 at the start of trading, the German index is now down 0.6% and stuck the wrong side of 11100, a miserable morning for Eurozone data sapping the bourse’s momentum. The CAC was in a similar, if less severe, situation, abandoning its initial 1% rise, while the FTSE MIB, scarred by the news of Italy slipping into recession at the end of last year, fell 0.7%.
With an increasingly gloomy market landscape, the FTSE failed to keep hold of its own growth. Its 7000-flirtation came to naught, the index instead falling back below 6950 as its gains were trimmed to just 0.2%. The final straw was sterling’s rebound, the currency adding 0.3% against the dollar and 0.4% against the euro as talk grows of a Brexit delay.
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