With the Dow Jones undone last night by the re-emergence of US-China trade tensions as a key market mover following a Bloomberg report suggesting the White House is prepping another round of tariffs, Europe got off to an uncertain start on Tuesday.
Just as it looked like October was going to end with the markets re-dipping their toes in the green, this latest trade war flare-up appears to have scuppered the nascent rebound. The European indices can’t quite make their minds up as to what to do, and while the Dow is currently facing a 100 point increase later this afternoon, it is still back lurking around 24500 having touched 25000 during Monday’s trading.
Despite BP (LON:BP) jumping 4%, the oil giant having revealed a 5 year high set of Q3 profits, the FTSE could only add 5 or so points after the bell, failing to return to 7050. As for the pound, it continued its post-Budget dip, with cable slipping another 0.3% to duck under $1.277.
Over in the eurozone things were much the same as in the UK. The DAX initially added 0.2%, only to pull back below 11350, while the CAC spent the early moments of the session flitting either side of the 5000 mark. The region’s morning builds to the first glimpse at the eurozone-wide Q3 GDP reading, with forecasts suggesting a rise from 0.3% to 0.4% quarter-on-quarter.
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