Italy’s FTSE MIB continued to lead the way on Monday, driving the European markets higher on hints that the country’s budget-based conflict with the EU could be easing.
With the Italian index rising 2.8%, the DAX and CAC jumped 1.2% and 1% respectively, taking the German and French bourses above 11300 and 4980. The FTSE was a slight step behind, but still climbed 60 points to return to 7010 having plunged under 7000 in the back end of last week.
The pound managed to shake off its initial losses against the euro, with sterling now sitting flat at €1.1305, while increasing its gains to 0.3% against the dollar, allowing cable to push above $1.285.
That the currency’s growth wasn’t greater post-EU summit is due to the treacherous path Theresa May now must walk if she wants a successful parliamentary vote in December; it looks like getting the 27 individual members of the European Union to agree to a deal may end up having been easier than forcing the Tory party to do the same.
Turning to the US open and the Dow Jones is set to join in with the European rally, with the index looking at a 250 point-plus surge after the bell. Yet though that’d lift the Dow back above 24500, it still leaves it around 1000 points adrift of where it started last week.
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