Taking their lead from the Dow Jones last night, the European indices rose at the start of Thursday – but with the FTSE looking in from the outside.
By the end of Wednesday night, the Dow had reclaimed all of Tuesday’s losses and then some, surging 530 points to cross 28,300 for the first time in a month. This as investors banked on Trump signing off on some kind of stimulus if he wins in November, with Joe Biden likely to do the same if he comes out of the election victorious.
Those hopes have helped drive the Eurozone higher this morning. The DAX added 1%, leaping past 13,000, a price it last saw 2 and a half weeks ago. A 0.7% increase for the CAC, meanwhile, put the French index the right side of 4900.
Unable to join in, the FTSE was lethargic at the start of Thursday’s session, unchanged just above 5950. A rash of red in its mining sector contributed to the UK index’s dour open, as did gains for the pound.
With hopes of a Brexit deal now reportedly at ’66 per cent’ according to Michael Gove, sterling was up 0.3% against the dollar and euro alike. This as talks enter crunch time, with the UK’s self-imposed October 15th deadline fast approaching.
As for the Dow itself, it is looking to continue its climb this afternoon. The futures are suggesting a 180 point rise, once that would see it hit 28,470.
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