A quiet Monday meant the latest twist in the US-China tariffs tiff last Friday continued to define trading.
The FTSE, which was one of the worst performers at the end of last week thanks to Brent Crude’s OPEC-fearing slide, managed to hold off from any serious losses after the bell. However, its 20 point dip still left it the wrong side of 7650, with the index now teasing lows not seen since the final day of May.
The eurozone’s struggles were even more pronounced on Monday. With political tensions in Germany rising over an argument about migration, the DAX dropped another 85 points, forcing the index back below 12950, further undoing the post-ECB growth managed last Thursday. The CAC was similarly miserable, shedding 0.8% to fall away from 5500, while the IBEX 35 and FTSE MIB slipped 0.3% and 0.5% respectively.
Interestingly, the dollar hasn’t dealt too badly with the latest trade war flare-up, with the greenback starting Monday by rising 0.3% against both the pound and the euro. This left cable back below $1.325, causing it to approach the 6 month intraday nadir struck at the end of May; the single currency, meanwhile, tripped under $1.158, and is approaching an 18 day low.
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