Seemingly taking heart from the Bank of England’s claim that there has been ‘some improvement in the preparedness of the UK economy for no-deal Brexit’, the pound rebounded on Thursday.
Cable, also benefiting from the restated dovishness of the Federal Reserve, rose 0.3%, putting further ground between it and the week’s 2-year-plus lows. Against the euro, meanwhile, it added the same amount, pushing it back above €1.114 and away from yesterday’s 6-month nadir. These gains served to prevent the FTSE from joining in with the gains seen elsewhere. Instead the UK index lost 0.2%, dragging it under 7520.
Thursday saw the Dow Jones once again mount a challenge on its all-time highs, the index spending the earlier moments of the session testing 27000. It appeared to settle a bit lower than that, a 110 point rise leaving it just shy of 26970. It will be interesting to see whether the Dow can breach 27000 for an extended period of time ahead of the month’s Fed meeting, or if it will take confirmation of a rate cut itself to cement that peak.
Elsewhere the Eurozone wasn’t up to much. The DAX was unable to recover any of the week’s Deutsche Bank/BASF losses, drifting 0.2% lower, with the CAC unchanged at 5570.
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