A series of bearish warnings from American analysts and economists, and a red-session in Asia, served to soften up the European indices at the open – though the Dow futures are currently unaffected.
After an odd Monday, with its hard to justify rebound, the markets got off to another weak start. The FTSE lost 0.4%, dipping back to 7160, but keeping away from yesterday’s sub-7100 lows. The CAC was in a similar state, losing 20 points to slip under 5200; only the DAX avoided a red open, instead sitting flat at 11780. In contrast, the Dow Jones is facing a 130 point surge when the bell rings on Wall Street, though there is a long way to go until that actually happens.
Sterling, once again, did nothing. Monday’s slight rise left cable at a one week high, though, at $1.267, it is miles off the $1.3139 it sat at this time last month. Against the euro, meanwhile, it fell 0.1%, striking a fresh 4 and a half month-low in the process.
The pound feels like it is just trying to run down the clock, June already a write-off due to the Tory leadership race – a battle that will start to properly heat up next week – with the currency only really interested in cold, hard Brexit progress.
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