The European indices couldn’t shake their Friday losses, some nasty data from China overnight and a set of dreadful Eurozone PMIs keeping the region in the red.
The FTSE dropped 0.8% to continue to lurk just above 6800, with the DAX back at 10800 after dropping 100 points, and the CAC the wrong side of 4850 thanks to a 0.9% decline. For the UK index those signs of economic slowdown in China were a big, weighty blow to its miners; for the Eurozone, meanwhile, news that the region had its worst month for 4 years in terms of manufacturing and services was an unwelcome early Xmas present.
As for the forex markets, that PMI slump meant the euro quickly lost its gains against the Brexit-dampened pound, the pair now sitting unchanged at €1.113. The dollar benefited from these crises, climbing 0.6% against both sterling and the single currency, forcing them to $1.257 and $1.129 respectively.
Looking to the US open and the Dow Jones seems just as upset about the China data as its European peers. The futures have the index dropping 230 points after the bell, a move that would return the index to 24350 and leave it back near where it started the week.
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