If lacking the same hutzpah as on Monday, the European markets at the very least defended the week’s peaks on Tuesday.
The FTSE was the rare index to push forth after the bell; but, then again, its highs are recent not record.
Adding 0.2%, or around 10 points, the FTSE was flirting with 6,775, a level last seen one month (and one day) ago.
It was a fairly predictable start from the FTSE, following up Monday’s blowout gains – spurred on by the UK speedily reaching a key milestone in the race to vaccinate the nation – with a timid, contemplative open.
The pound, meanwhile, added another 0.1% against the dollar, as the greenback continues to be undermined by Biden’s stimulus plans. GBP/USD is now above $1.3926 for the first time in approaching 3 years.
The Eurozone was just as quiet, if going in the opposite direction. The DAX fell by 0.1%, but crucially kept above 14,100, and within reach of a fresh all-time high. The CAC was also down 0.1%, keeping the French bourse away from 5,800.
Things could change once the Eurozone gets a look at its flash GDP reading, expected at -0.7% for the fourth quarter, and the region-wide and German ZEW economic sentiment numbers, which are expectedly to rise and fall month-on-month respectively.
After Monday’s President’s Day holiday, the Dow Jones is back in the saddle this Tuesday – and it’s going record-chasing. The index is looking to cross 31,650 for the first time as Joe Biden continues to push forwards with his $1.9 trillion American Rescue Plan.
Now that Donald Trump’s 2nd impeachment is dealt with, Congress can firmly focus on the stimulus package, which is potentially on track to be in place by mid-March.
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