Another soft inflation reading out of the US helped the Dow Jones avoid the kind of losses seen during the European session.
Though the normal figure came in as expected at 0.1%, the core CPI number missed estimates as it arrived unchanged, also at 0.1%. While not enough to cause a dollar-dive or Dow jump due to how heavily priced in a Fed rate cut has been since June began, it did help the US index start trading flat at 26050, a big improvement on the losses suggested by the futures.
There is plenty of time for that to change, however, especially given that the Dow was prevented from climbing into the green thanks to Donald Trump’s latest trade comments. And if anything has been learnt in the last 18 months, those kinds of market-destabilising verbal-belches can happen at any time.
While European indices weren’t as lucky, they did pull back from the lows struck at lunchtime. The FTSE remained the wrong side of 7400 as it fell 0.4%, while the DAX lurked under 12130 and the CAC sat at 5375 as they dropped 0.4% and 0.5% respectively.
As for the pound, its initial bounce following Boris Johnson’s claim that he wouldn’t actively pursue a no-deal Brexit didn’t last long. Instead sterling found itself unchanged against the dollar at $1.272, and up just 0.1% against the euro, pushing it in the vicinity of €1.124.
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