The European open was pretty tame on Monday, the region’s indices drifting lower following the surge seen at the end of last week.
The FTSE was the sole major indices to avoid a notable dip. Instead the UK index started the week effectively flat at 7475, unable to re-hit the 7500 mark it briefly found itself back above last Friday. It’s somewhat surprising that the UK index didn’t incur a sizeable loss given that Rio Tinto (LON:RIO), BHP Billiton (LON:BLT) and their mining peers were down anywhere between 1.5% and 3%, a decline that was only partially offset by the half a percent rise seen by both BP (LON:BP) and Shell (LON:RDSa) following Brent Crude’s $80-crossing 2% surge.
As for the pound – which was strapped to a roller coaster last week, hitting $1.33 highs and $1.305 lows as investors processed better than forecast inflation and retail sales readings, a retreating dollar and Brexit blow after Brexit blow – it attempted a comeback after the bell. Against the greenback it climbed 0.2%, with cable pushing towards $1.311, while against the euro it was up 0.3%, allowing it to cross €1.116.
Over in the Eurozone the likes of the DAX and CAC were in a worse mood than their UK cousin. The German index dropped 40 points, taking it back under 12400, with the CAC slipping 0.2%, keeping it the wrong side of 5500.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."