Keen to claw back the week’s losses, and willing to now turn a blind eye to the USA’s latest record one-day increase in covid-19 cases, the European markets galloped forth on Friday.
It seems that investors are choosing focus on stimulus-positive remarks from around Europe, instead of the realities of a potential second wave. Christine Lagarde, who said that we’ve ‘probably passed the lowest point’ of the pandemic, claimed that ‘there is no question’ in her mind that central banks need to use ‘all tools available’ to combat a recession. She did go on to warn, however, that she thinks EU leaders won’t reach a final agreement over fiscal stimulus at the July 17th summit.
For the UK, it wasn’t the Bank of England but the Chancellor in the spotlight. When pressed on stimulus, Rishi Sunak said that he ‘will be outlining further things in the coming weeks’. If hardly a rousing statement of intent, it was still enough of a hint to allow the FTSE to double down on its early growth.
The UK index climbed 1.4% as the session went on, returning to 6250 having at one point hit 6025 during yesterday’s trading.
While not quite as strong, the DAX still crossed 12300 as it rose 0.7%, with the CAC closer to the FTSE with a 1.2% increase.
Europe’s ebullience may face an obstacle when it comes time for trading to start stateside. The Dow Jones is facing a 70 point drop when the bell rings on Wall Street, though that is already 100 points less than the futures were suggesting a few hours previous.
"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."