Looking for an excuse to rebound after limping to a close last week, European investors clung onto a normally ignored piece of data out of China.
For the 4th consecutive month Chinese industrial profits were on the rise, surging 19.1% in August year-on-year, meaning for January to August profits are only down 4.4%. Not bad at all, given how painful some months during that period will’ve been.
And while China’s economic strides can hardly be used as proof that the decelerating recovery in Europe and the US will soon pick back up again, not least because of the surging number of covid-19 cases, investors were more than willing to throw a Monday morning party celebrating the figures.
Leading the way was the DAX, which climbed 300 points to strike a one-week peak of 12750. The CAC couldn’t quite hit its own one week high, but still was up almost 100 points and above 4800.
Unable to keep up the same pace as its Eurozone peers, the FTSE added 1.6%. That did still, however, lift it to 5930, a price last seen 7 days ago.
Preventing the FTSE from really taking off, the pound had its own reasons to rise on Monday, jumping 0.4% against dollar and euro alike. This as reports emerged that both the UK and EU have made concessions regarding a post-Brexit trade deal, ahead of the latest round of negotiations this week.
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