The FTSE avoided the losses seen over in the eurozone, largely because of sterling’s ongoing crisis.
Concerns about a more pessimistic Brexit outlook from the country’s businesses, a lack of faith in Theresa May heading into Thursday’s EU summit, and disappointment at a dovish message from MPC member Jon Cunliffe left the pound in a sorry state. Against the dollar it was at a sub-$1.31, 7 month nadir after falling 0.3%, while against the euro it hit a 7 and a half week low of €1.1305 following a half a percent plunge.
This allowed the FTSE to remain flat above 7600, its relatively sanguine morning a stark contrast to the eurozone. There the DAX fell 0.7%, abandoning 12300 in the process, with the CAC slipping back to 5300 and the IBEX 35 dropping 0.5%.
Turning to this afternoon and there might be a distraction in the form of the final Q1 GDP reading from the US. Granted, analysts are expecting the figure to come in unchanged at an annualised rate of 2.2%, but any movement from that estimate may cause a shift in the forex markets. As for the Dow Jones, it’s actually forecast to jump 80 points after the bell, a move that would return the index to 24200.
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