Europe may have wilted, but the US opened strong, lifted by the day’s M&A-nia and a rebound in its volatile tech sector.
Surging 360 points, the Dow Jones found itself back above 28000, a level it has hit its head on a few times in the last week. A potential resolution to the US/China Tiktok tussle – with Oracle (NYSE:ORCL) managing US user data, rather than Microsoft (NASDAQ:MSFT) owning the American arm of ByteDance’s business – has helped generate some goodwill, even though it wouldn’t be a shock to see a compromise-averse Trump shoot the deal down.
Nvidia’s $40 billion purchase of the Cambridge-based ARM Holdings (LON:ARM) from Softbank also boosted sentiment, the US firm rising 6% following the announcement.
In something of an unusual sight, this US growth did little for Europe. Though the CAC added 0.2%, the DAX went in reverse, falling 0.3%.
The FTSE dipped 0.2%, keeping above 6000 but drifting from its early 6080 highs. This as the pound rebounded against dollar and euro alike, jumping 0.7% and 0.3% respectively. Reports of Tory opposition to the lawbreaking UK Internal Market Bill, and BNP Paribas’s claim that a no deal Brexit isn’t ‘inevitable’, gave the currency a reason to move higher.
There are a few things that could come to impact tomorrow morning’s open. Firstly, whether the US indices can keep hold of their gains all the way until closing time, something they have struggled with this month. Secondly, the state of the Chinese data in Tuesday’s early hours, especially the retail sales reading, which is set to come in at a 7-month ‘peak’ of 0.0%.
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