After the Dow Jones received an unlikely source of anti-tariff sentiment on Monday night, the European indices were in rebound mode this Tuesday.
The Dow shot up by 1.4% last night, as House Speaker Paul Ryan’s spokesperson stated that members of the GOP are ‘extremely worried about the consequences of a trade war’ and are ‘urging the White House to not advance’ with the plans (loosely) outlined by Trump last week. While this signals yet more destabilising discord for the president, investors’ primary focus was on the tariff-blocking obstacles created by Ryan and co., and their relief was immediate to see.
This positive swell, unsurprisingly, fed into the European open, especially since there isn’t exactly anything to compete with it news-wise this Tuesday. The FTSE rose 0.8%, sending the index back towards 7200 having sat under 7100 for much of Monday, while the DAX and CAC jumped 0.9% and 0.4% respectively, with both continuing to largely ignore the political issues in Italy.
As for the forex markets, they were wary of making any sudden movements. Cable sat flat, but managed to hold above $1.38 when doing so, while the euro-dollar nudged 0.1% higher to cross $1.234. The single currency also had the edge over the pound, sending sterling back below €1.121 with a 0.1% rise.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.