By Connor Campbell, Financial Analyst for Spreadex.com
A flurry of fresh US highs – aided by the latest record peak from Facebook (NASDAQ:FB) – contrasted with a sour afternoon for the European markets this Thursday.
The Dow Jones itself got some 21750-crossing run-off goodwill from the social media giant’s growth – Facebook posted a staggering 71% rise in Q2 profit – despite the stock not actually being part of the index. Investors effectively ignored the day’s shoddy durable goods orders reading, which missed estimates at 0.2%, to focus on the so-far successful earnings season, with the likes of Amazon.com still to come this evening.
The European indices weren’t so lucky. The DAX saw its losses double once the US session got underway, the 120 point fall leaving the German index back below 12200 and near its worst price since Macron won the first round of the French presidential election back in April. The CAC was far less perturbed by the euro’s continued strength, though the index did trade a half a percent rise for a 0.2% fall as the day went on.
As for the FTSE, despite flirting with a weightier drop thanks to cable’s 10 month high and AstraZeneca’s (LON:AZN) 16% cliff-dive the UK index managed to hold off the kind of losses seen by its German cousin, instead dipping just 10 points. It helps that the pound became slightly less robust after the bell rang on Wall Street, its gains halving to 0.2% against the dollar and the euro.
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